Energy markets are ubiquitous in nearly all industries and activities in modern society. We need energy in almost every aspect of our lives, from powering homes, fueling transportation, to manufacturing.
Because of the constant supply and demand of energy assets, price movements present a great trading opportunity. Traders can buy and sell at spot price or speculate on price actions with derivative products such as spread bets or CFDs.
From crude oil, natural gases, gasoline to gasoil, energy trading is one of the most important markets and affects the cost of energy for our everyday use.
VT Markets offers trading of spot energy contracts via the MetaTrader 4 platform against USD:
• Crude Oil (Cash/Future)
• Natural gases
Check all the currency pairs available to trade with VT Markets.
(the spreads demonstrated in the table below are typical spreads and for your reference only)
10 Metric Tonnes
|Brent Crude Oil Future
Traders can trade energy online such as crude oil, natural gas, gasoline and gasoil. VT Market users can opt to buy and sell at spot price or speculate on the asset’s value through derivative products, such as energy CFDs.
One of the biggest benefits of trading energy CFDs is that it allows traders to utilise leverage to control larger positions with a smaller amount of capital. They also provide traders with exposure to the energy markets, including commodities such as crude oil, natural gas and heating oil. By adding energy CFDs to your trading portfolio, you can diversify your investments across different asset classes, reducing the overall risk and potentially benefiting from market movements in the energy sector.
These assets are also available at various timeframes, from intraday trading to longer-term positions. This flexibility allows traders to adapt their strategies to market conditions and preferences. Compared to trading physical energy commodities, trading energy CFDs often involves lower costs. Traders can benefit from tighter spreads, lower commissions and reduced transaction fees, making them an ideal option for beginner traders who aren’t fully ready to commit just yet.
The leverage available for energy trading, including trading energy CFDs, can vary depending on the broker and your specific trading platform or account type. Different brokers may have different leverage options and margin requirements for energy trading.
Typically, leverage in energy trading can range from 1:1 to higher levels, such as 20:1, 50:1, or even higher. Higher leverage allows traders to control larger positions with a smaller amount of capital, potentially amplifying profits. VT Markets offers maximum leverage between 333:1 and 20:1, depending on the energy CFD you want to trade with.
Energy prices are affected by several factors within the global markets, such as supply and demand, where should the demand for energy exceed supply, prices tend to rise; when supply exceeds demand, prices tend to fall. The costs associated with producing and extracting energy sources can also significantly influence prices.
Regulatory factors, such as carbon pricing, emissions standards, and renewable energy targets also play a role in price fluctuations as well as conflicts, sanctions, political instability and changes in government policies.
Absolutely! VT Markets understands the hesitation many beginner traders may encounter before creating their trading accounts. To build your confidence and test drive your energy trading strategies, you can open a demo account and practice trading energy CFDs using virtual money. Once you feel prepared to trade for real, you can move onto a live trading account and place your first trade.
Deposits and withdrawals can be made via the VT Markets Client Portal. These funds must be deposited from a source in the same name as the trading account, such as a credit or debit card or alternative payment account.
Withdrawals are typically processed within one business day and can take 1-7 business days for you to receive your funds. For more information about our deposit and withdrawal policies, contact us today.
In energy trading, slippage refers to the difference between the expected price of a trade and the actual executed price during buying or selling energy commodities. Slippage occurs when there is a delay or discrepancy between the time a trader places an order and when it is executed by the broker or exchange.
As VT Markets operates under Market Execution, we won’t be able to fill an energy CFD order that is no longer available. In these circumstances, your order will be filled by our liquidity providers at the market rate.
For traders looking to automate their trading strategies during energy trading, VT Markets highly recommends trading energy CFDs using the MetaTrader 4 platform. Commonly known as MT4, the platform features a range of tools and features that can assist users with their trades, including automatic execution of trades.
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