Sentences with phrase «by oil futures contracts»

ETFS WTI 2 mth (OILW) is designed to deliver a total return, which consists of the excess return generated by oil futures contracts plus accrued interest.

Not exact matches

If the oil traders are right, they can make money by buying oil at today's spot price, selling a futures contract for delivery at the higher price expected in the future and storing the oil in the meantime.

Oil fund managers are not betting on $ 20 a barrel oil this week because they increased their net - long position by 16,855 contracts to 132,857 futures and options in the week ending Sept. 8, according to the CFTC commitment of traders repoOil fund managers are not betting on $ 20 a barrel oil this week because they increased their net - long position by 16,855 contracts to 132,857 futures and options in the week ending Sept. 8, according to the CFTC commitment of traders repooil this week because they increased their net - long position by 16,855 contracts to 132,857 futures and options in the week ending Sept. 8, according to the CFTC commitment of traders report.

The futures are designed to reflect the price of bitcoin without an investor having to physically hold the virtual currency, not unlike how oil, gold, copper or cocoa prices are determined by futures contracts.

During this same period, activity on the crude oil futures market — as measured by the number of contracts outstanding, trading activity, and the number of traders — has increased significantly.

It meant that if someone could buy physical oil and store it cheaply they could make a risk - free annualised return of almost 40 % by simultaneously selling July futures contracts.

If you think oil is on the way up, you can invest by buying stock in an oil and gas company, investing in a limited partnership, or buying the commodity through futures contracts.

For example, if a large speculator who was very bullish on oil bid - up the price of the December - 2016 oil contract from $ 64 to $ 70, it would create an opportunity for other traders to lock - in a profit by purchasing physical oil and selling the December - 2016 futures with the aim of delivering the oil into the contracts late next year.

For another example, if a large speculator who was very bearish on oil aggressively short - sold the December - 2016 oil contract, driving its price down from $ 64 to $ 60, it would create an opportunity for other traders to lock - in a profit by selling physical oil and buying the December - 2016 futures with the aim of eventually replacing what they had sold by exercising the futures contracts.

As an example, airlines are well known to protect themselves against significant rises in crude oil prices, by buying a futures contract today with a specified price and delivery date in the future, on the assumption that oil prices will be on the rise over the period in question.

Perhaps surprisingly, until only about forty years ago, trading futures markets consisted of only a few commodity farm products, however, now they have been joined by a huge number of tradable financial and other tradable products such as precious metals like gold, silver and platinum; livestock such as hogs and cattle; energy contracts such as crude oil and natural gas; foodstuffs like coffee and orange juice; and industrials like lumber and cotton.

The investment seeks to replicate, net of expenses, the daily changes in percentage terms of the spot price of Brent crude oil as measured by the changes in the price of the futures contract on Brent crude oil as traded on the ICE Futures Exfutures contract on Brent crude oil as traded on the ICE Futures ExFutures Exchange.

For example, if a oil futures contract is for $ 100,000, an investor can enter into that position by posting only $ 5,000 of initial margin.

In 2017, oil futures contracts in New York and London outstripped physical trading by a factor of 23.

Key takeaways include: Looking at commodities, Oil, as measured by WTI futures contracts, has bounced from Read more -LSB-...]

United States Oil Fund (USO), for instance, tries to track the spot price of light, sweet crude oil by buying oil - futures contracOil Fund (USO), for instance, tries to track the spot price of light, sweet crude oil by buying oil - futures contracoil by buying oil - futures contracoil - futures contracts.

The fund's strategy seeks to outperform certain index - based strategies by actively managing the rolling of WTI crude oil futures contracts to (a) mitigate the negative impact of contango, or (b) benefit from the backwardation present in the WTI crude oil futures markets, but there can be no guarantee that it will be successful in doing so.

The fund's strategy seeks to outperform certain index ‑ based strategies by actively managing the rolling of WTI crude oil futures contracts to (a) mitigate the negative impact of contango, or (b) benefit from the backwardation present in the WTI crude oil futures markets, but there can be no guarantee that it will be successful in doing so.

Due to the use of futures contracts, many oil ETPs make for poor long - term investments because they can expose investors to contango by using front - month futures.

In all the three cases, the soya oil manufacturer is able to get his desired buy price, by using futures contract.