micro crude oil futures of the CME Group they offer you an ideal opportunity to experience the benefits of trading oil futures at a reduced cost. With a smaller contract size, more traders can now take advantage of the leverage and liquidity of one of the largest commodity markets.
Watch this short video to learn more about the benefits of trading Micro Crude futures.
Less financial commitment
At 1/10 of the standard contract size, the financial commitment to trade micro crude oil futures contracts is significantly reduced.
While standard crude oil futures have a contact value of $10 per tick and $1000 per point, micro crude futures have a contact value of $1 per tick and $100 per point .
Given their smaller size, Micro Crude futures offer more granularity and smaller margin requirements. For example, you can now trade 5 microloan contracts, which would be half the contract size of the standard crude oil (CL) futures contract. This allows you to start small and increase your trading volume as you gain experience.
24 hour trade
While stocks or ETFs offer limited trading hours, Micro Crude Oil trades 23 hours a day, 6 days a week. This provides more futures trading opportunities throughout the day.
High leverage investment
As with other futures contracts, Micro Crude Oil is a highly leveraged investment. By using margin, you can control a large contract value with a smaller amount of capital.
Note: Leverage can lead to losses in excess of initial margin, and traders should take appropriate steps to minimize risk when trading in unpredictable markets.
Additionally, trading microcrude futures can offer substantial tax advantages over other asset classes, such as ETFs or stocks.
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