Brent Crude Oil Spread Betting

Where to Spread Bet on Brent Crude Oil

Commodities
Gold (spread size)	4	5	5	4	4	4	4
UK Crude Oil (spread size)	5	5	4	4	6	4	5
Commodities (min stake)	£1	£1	£1	£1	£0.50	£0.50	£1
Commodities (more available)

Commodities News and Analysis

• Commodities Spread Betting News
• Gold Spread Betting Analysis
• Crude Oil Spread Betting Analysis
• Silver Spread Betting Analysis
• Coffee Spread Betting Analysis
• Natural Gas Spread Betting Analysis

Brent Crude Oil Spread Betting Prices and Charts

• Capital Spreads
• City Index
• ETX Capital
• Financial Spreads
• GFT
• IG Index
• InterTrader

How to Spread Bet on UK Crude Oil

Market	UK Crude Oil (March) Futures
The Quote	$112.15 - $112.20
What This Means	You can take a position on the UK Crude Oil Futures market settling:   Above $112.20, or   Below $112.15 At the close of trading on the closing date for this 'March' futures spread betting market, 13 February 2012. It is important to remember that with a futures trade your spread bet will be closed when the March UK Crude Oil futures market expires, 13 February 2012, but you can also choose to close your position prior to the closing date.
Points (Units) Traded	With futures markets, trades on the UK Crude Oil market are priced in £x per cent. Where a cent is $0.01 of the energy's price movement. E.g. if UK Crude Oil changes by 45¢ ($0.45) then you would gain or lose 45 multiples of your stake.
Stake Size	You decide how much you want to trade per cent, e.g. £2 per cent, £3 per cent, £10 per cent etc.
Staking Example	For example, if your stake was £4 per cent and UK Crude Oil moves by $0.32 (32¢), you would win/lose £4 per cent x 32¢ = £128.

Worked Spread Betting Example | Taking a Bullish View of UK Crude Oil

You Now Work Out Whether to Buy or Sell	Where do you think UK Crude Oil will settle on 13 February 2012:   Above $112.20? or   Below $112.15?
Let’s Assume You Want to Buy	Above $112.20
You Decide Your Stake, Opting for	£1 per cent
Now What Happens?	You make £1 for every cent ($0.01) UK Crude Oil closes above $112.20 You lose £1 for each cent ($0.01) UK Crude Oil settles lower than $112.20
If You Are Spread Betting on a Market to Increase Your P/L =	(Settlement Value - Initial Value) x stake per cent
Example 1	UK Crude Oil goes higher and the quote for the financial spread betting market is adjusted to $113.32 - $113.37.
Close and Take a Profit?	At this point, you may decide to let your futures trade run to expiry or close it, i.e. close your trade for a profit. For this example, you opt to settle your position and sell the market at $113.32.
Your P/L =	(Settlement Value - Initial Value) x stake per cent
	($113.32 - $112.20) x £1 per cent
	$1.12 x £1 per cent
	112¢ x £1 per cent
Your P/L =	£112 profit
Example 2	UK Crude Oil falls and the quote for the market becomes $111.19 - $111.24.
Close and Limit Your Loss?	You can now choose to keep your futures spread bet open until expiry or close it, i.e. close your position and limit your losses. In this case you choose to close your trade at the current price by selling the market at $111.19.
Your P/L =	(Settlement Value - Initial Value) x stake per cent
	($111.19 - $112.20) x £1 per cent
	-$1.01 x £1 per cent
	-101¢ x £1 per cent
Your P/L =	-£101 loss

Fully Worked Example | Going Short of UK Crude Oil

You Select Whether to Buy or Sell	Your research leads you to think that UK Crude Oil will close on 13 February 2012:   Above $112.20? or   Below $112.15?
Let's Assume You Want to Sell	Below $112.15
You Choose Your Stake, Let's Assume You Select	£3 per cent
So What Now?	You lose £3 for each cent ($0.01) UK Crude Oil closes higher than $112.15 You make £3 for each cent ($0.01) UK Crude Oil closes lower than $112.15
When Spread Betting on a Market to Go Down Your P/L =	(Initial Value - Settlement Value) x stake per cent
Example 3	UK Crude Oil slips and the spread trading market is moved to $111.66 - $111.71.
Take a Profit?	You could opt to keep your futures trade open until expiry or close it, i.e. close your spread bet to lock in your profit. In this example you opt to settle your bet at the current quote by buying the market at $111.71.
Your P/L =	(Initial Value - Settlement Value) x stake per cent
	($112.15 - $111.71) x £3 per cent
	$0.44 x £3 per cent
	44¢ x £3 per cent
Your P/L =	£132 profit
Example 4	UK Crude Oil rises and the quote for the spread betting market is revised and is set at $112.49 - $112.54.
Time to Limit Your Loss?	At this point, you can opt to let your futures trade run to expiry or close it, i.e. close your position to limit your losses. In this instance you opt to settle your position early by buying at $112.54.
Your P/L =	(Initial Value - Settlement Value) x stake per cent
	($112.15 - $112.54) x £3 per cent
	-$0.39 x £3 per cent
	-39¢ x £3 per cent
Your P/L =	-£117 loss

UK Crude Oil Notes:

• Financial spread betting quote taken from Financial Spreads, 1 February 2012
  
  
• UK Crude Oil is traditionally priced in dollars per barrel
  
  
• In spread betting, Brent Crude Oil is often referred to as UK Crude Oil
  
  
• Many spread betting firms will also allow you to trade on UK Crude Oil in euros/cent and dollars/cent
  
  
• In addition, spread betting also lets you speculate on a wide variety of other financial markets, for more details read:
  
  
  • Stock Market Indices
  • Spread Trading on Currencies
  • Spread Trading on Commodities

Demo Accounts for Spread Betting on Brent Crude Oil

Spread Betting
Demo Account

Spread Betting on Commodities

• Spread Betting on Commodities
• Spread Betting on Gold
• Spread Betting on Crude Oil