Instrument : &BRENT/WTI
The personal composite instrument «&BRENT/WTI» reflects the price dynamics of a physically delivered Brent crude oil futures contract against cash settlement WTI crude oil futures contract. The base part of this instrument is composed of 1 barrel of Brent crude oil, and the quoted part - 1 barrel of crude oil of the WTI grade.
Oil is represented by the instruments #C-BRENT and OIL - the continuous CFDs on respective futures. The asset percentage content of the instrument is estimated on the basis of asset prices on the instrument creation date.
The trading instrument &BRENT/WTI is used for the analysis and trade of the spread between the two grades of crude oil where one of the futures contracts is physically delivered futures contract while the other is cash settled, which also contributes to the difference.
|&BRENT/WTI||№||Asset||Volume / 1 PCI||Percentage||Volume (USD) / 1 PCI||Unit of measurеment|
|Fixed spread, pip||227||227||227|
|Floating Spread, pip||227||227||227|
|Order distance, pip||-||-||-|
|Swap (long/short) in pips on Vol||-1.826 / -3.144||-1.826 / -3.144||-1.826 / -3.144|
|>=100.00||10.00 – 893.51||>=10.00|
|The value of 1 pip in USD for the Vol||0||0||0|
|Week day||Trading hours (CET)||Local trading hours|
|Monday||01:00 — 23:00||01:00 — 23:00|
|Tuesday||01:00 — 23:00||01:00 — 23:00|
|Wednesday||01:00 — 23:00||01:00 — 23:00|
|Thursday||01:00 — 23:00||01:00 — 23:00|
|Friday||01:00 — 21:00||01:00 — 21:00|
The personal composite trading instrument &BRENT/WTI is used for Brent oil and WTI oil pair trading, as well as multi-year comparative analysis of the spread and the instruments themselves – Brent oil and WTI oil continuous futures contracts. For example, by building a percentage chart in the NetTradeX terminal for three instruments &BRENT/WTI, #C-BRENT and OIL (Fig.1) the 5-year dynamics of the ratio of prices of these two grades of crude oil and the price dynamics against USD for these grades of oil can be studied.
Trading this personal instrument is analogous to trading the spread between two similar assets.