The personal composite instrument «&SumOIL/GAS» reflects the price dynamics of a portfolio composed of futures contracts on Brent and WTI crude oils against natural gas futures contract. The base part of this instrument is composed of 1 barrel of Brent crude oil and 1 barrel of WTI crude oil, the quoted part - 50 million British thermal units of natural gas.
Oil is represented by the instruments #C-BRENT and OIL - the continuous CFDs on respective futures, and gas is represented by the continuous CFD #C-NATGAS. The asset percentage content of the instrument is estimated on the basis of asset prices on the instrument creation date.
The trading instrument &SumOIL/GAS is used for the analysis and trade of the spread between oil and natural gas.
|&SumOIL/GAS||№||Asset||Volume / 1 PCI||Percentage||Volume (USD) / 1 PCI||Unit of measurеment|
|Fixed spread, pip||676||676||676|
|Floating Spread, pip||676||676||676|
|Order distance, pip||-||-||-|
|Swap (long/short) in pips on Vol||-0.386 / -0.561||-0.386 / -0.561||-0.386 / -0.561|
|>=100.00||10.00 – 553.96||>=10.00|
|The value of 1 pip in USD for the Vol||0||0||0|
|Week day||Trading hours (CET)||Local trading hours|
|Monday||02:00 — 23:00||02:00 — 23:00|
|Tuesday||02:00 — 23:00||02:00 — 23:00|
|Wednesday||02:00 — 23:00||02:00 — 23:00|
|Thursday||02:00 — 23:00||02:00 — 23:00|
|Friday||02:00 — 22:00||02:00 — 22:00|
The personal composite trading instrument &SumOIL/GAS is used for oil and natural gas pair trading, as well as multi-year comparative analysis of the spread and the instruments themselves – continuous futures on Brent oil, WTI oil and natural gas. For example, by building a percentage chart in the NetTradeX terminal for the spread &SumOIL/GAS and three instruments #C-BRENT, OIL and #C-NATGAS (Fig.1) the 5-year relative dynamics (starting from 2010) of these energy assets and oil-natural gas spread can be studied. As is evident from the chart, buying the spread, that is buying oil and selling natural gas, yielded substantially higher returns during most of that period than buying the assets themselves.
Traders who specialize in energy raw materials trading will be comfortable trading this PCI.