Heating Oil Spread Betting

cf_market_short Trading Guide

The CleanFinancial guide to Heating Oil spread betting.

Live Heating Oil Chart & Prices

The interactive CFD chart below offers you a handy guide to the Heating Oil market.

This Plus 500 chart usually shows the Heating Oil futures market.

If you want to analyse spread trading prices and charts for Heating Oil, you will generally require a financial spread betting account (accounts are normally dependent on status and suitability checks).

Should your application be accepted then you will be able to log in and review the real time trading charts/prices. These are usually provided for free. Having said that, you’ll probably get the occasional newsletter and/or sales call from your chosen broker.

If you want to trade, remember that financial spread trading and contracts for difference carry a high level of risk to your capital and can result in losses that exceed your initial deposit.

Where Can I Spread Bet on Heating Oil?

Investors are able to trade Heating Oil, and an array of related markets, at:

Heating Oil Trading News

5 May 2018, 12:56pm, Updated Heating Oil No. 2 COT Report

The latest Commitments of Traders Report (COT) for Heating Oil No. 2 has been released by the CFTC, see our Heating Oil No. 2 COT report below.

We have also updated our Commodities COT Summary Report.

Update by Gordon Childs, Editor, CleanFinancial

» For more see Commodities Trading News & Analysis.

Professional Charting Packages for Heating Oil

Whilst charts tend to differ from firm to firm, the charts usually come with helpful analytical features like:
  • A broad variety of intervals e.g. 1 minute, 1 hour, 1 day and so on
  • Various chart views e.g. bar, candlestick and line charts
  • Tools for drawing features e.g. trendlines, Fibonacci time zones, arcs and fans
  • Overlays and indicators e.g. Bollinger Bands, Parabolic SAR, TSI and so on
The charts offered by Financial Spreads also have more advanced aspects, including:
  • BackTesting and Optimisation tools
  • Custom alerts for when the markets hit a pre-determined level

Sample commodity market candlestick chart

The following firms provide users with access to real time prices/charts:

Where Can I Trade Heating Oil for Free?

Any form of trading comes with a degree of risk. However, if you want to open a (free) Practice Account, that allows you to try out spread trading on an array of markets, see below.

Furthermore, remember that financial spread betting in the UK is currently free of tax*.

If you’re looking for a free financial spread betting website then investors can trade Heating Oil with no brokers’ fees and no commissions through firms such as:

Free Demo Account

If you are interested in an entirely free Demo Account to get a better feel for financial spread betting, including markets such as Heating Oil, then you can always look into:

The spread betting firms listed above currently offer a risk free Demo Account that lets investors access professional level charts, test new theories and practice with a variety of trading orders.

How to Spread Bet on Heating Oil?

As with a variety of energies markets, it is possible to place a spread bet on Heating Oil futures to rise or fall.

If you look at a financial spread betting site like FinancialSpreads, you can see they are currently showing the Heating Oil June Futures market at $3.1900 – $3.1930. This means you can spread bet on Heating Oil:

  Heating Oil Spread Trading Example Closing higher than $3.1930, or
  Heating Oil Trading Example Closing lower than $3.1900

On the settlement date for this ‘June’ market, 30-May-12.

When spread trading on Heating Oil you trade in £x per $0.0001. As a result, if you chose to have a stake of £3 per $0.0001 and Heating Oil moves $0.0035 then that would alter your P&L by £105. £3 per $0.0001 x $0.0035 = £105.

Heating Oil Futures Trading Example

Taking the spread of $3.1900 – $3.1930, let’s assume:

  • You have done your market analysis, and
  • You think that the Heating Oil market will close higher than $3.1930 by 30-May-12
If so, you might decide to buy a spread bet at $3.1930 for a stake of, for example, £2 per $0.0001.

Therefore, you win £2 for every $0.0001 that Heating Oil rises above $3.1930. Of course, such a bet also means that you will lose £2 for every $0.0001 that the Heating Oil market moves below $3.1930.

In other words, if you ‘Buy’ a spread bet then your profits (or losses) are found by taking the difference between the settlement price of the market and the price you bought the spread at. You then multiply that difference in price by your stake.

Therefore, if, on the expiry date, Heating Oil finished at $3.2010, then:

P&L = (Settlement Level – Initial Level) x stake
P&L = ($3.2010 – $3.1930) x £2 per $0.0001
P&L = $0.0080 x £2 per $0.0001
P&L = £160 profit

Trading commodity markets, by spread betting or otherwise, doesn’t always result in a profit. In this case, you wanted the futures market to increase. However, the price of the commodity can also fall.

If Heating Oil had fallen, settling at $3.1858, you would end up making a loss on this trade.

P&L = (Settlement Level – Initial Level) x stake
P&L = ($3.1858 – $3.1930) x £2 per $0.0001
P&L = -$0.0072 x £2 per $0.0001
P&L = -£144 loss

Note: Heating Oil June Futures market taken as of 26-Apr-12.

Advert: Heating Oil Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Heating Oil with Financial Spreads.

Heating Oil No. 2 Commitments of Traders Report – 15 May 2018 (i)

Futures Only Positions, NYME, Code 22651, (Contracts of 42,000 US gallons) (i)

Reporting Firms (i) Non-Reportable Positions (i)
Non-Commercial (i)
Commercial (i) Total Reportable (i)
Commitments (i) Open (i) Interest Commitments
Long (i) Short (i) Spreads (i) Long Short Long Short Long Short
132,922 90,852 89,856 177,237 239,056 400,015 419,764 448,472 48,457 28,708
Changes from 8 May 2018 (i) Change in (i) Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
7,104 -2,506 8,321 10,474 18,257 25,899 24,072 24,896 -1,003 824
Percent of Open Interest for Each Category of Trader (i)
Long Short Spreads Long Short Long Short   Long Short
29.6% 20.3% 20.0% 39.5% 53.3% 89.2% 93.6%   10.8% 6.4%
Number of Traders in Each Category (i) Total (i) Traders  
Long Short Spreads Long Short Long Short    
83 39 85 75 83 201 178 229    
Long/Short Commitments Ratios (i)   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
1.5:1   1:1.3 1:1   1.7:1
Net Commitment Change (i)  

Also see: