Ice WTI Contract Specifications: Everything You Need to Know
If you`re trading crude oil, you`re likely to come across the Ice WTI contract. This contract specifies the delivery of crude oil from a storage location in Cushing, Oklahoma. In this article, we`ll take a closer look at the Ice WTI contract specifications so that you can make informed trades.
What is the Ice WTI Contract?
The Ice WTI contract is a futures contract that enables traders to buy and sell West Texas Intermediate (WTI) crude oil. This contract is traded on the Intercontinental Exchange (ICE), the leading global exchange for energy commodities.
The WTI crude oil is a benchmark for oil prices in North America, and the Ice WTI contract is the most widely used benchmark for crude oil trading in the US. Traders use the Ice WTI contract to hedge their positions for crude oil, as well as for speculative trades.
Ice WTI Contract Specifications
Here are the specifications of the Ice WTI contract:
Contract Size
The Ice WTI contract size is 1,000 barrels.
Tick Size
The tick size for the Ice WTI contract is $0.01 per barrel, which is equivalent to $10 per contract.
Contract Months
The Ice WTI contract trades for delivery in the current month, the next consecutive two months, and then every January, February, April, May, June, July, August, September, November, and December.
Trading Hours
The trading hours for the Ice WTI contract are from 01:00 am to 10:30 pm EST, Monday to Friday.
Delivery Months
The delivery months for the Ice WTI contract are March, April, May, June, July, August, September, October, November, and December. Delivery is made to a storage location in Cushing, Oklahoma.
Price Quotation
The price quotation for the Ice WTI contract is in US dollars per barrel.
Margin Requirements
The margin requirements for the Ice WTI contract vary depending on the broker, but the minimum margin requirement is usually around $4,500 per contract.
Conclusion
Knowing the Ice WTI contract specifications is important if you`re trading crude oil. With these specifications, you can make informed trades and understand the risks involved in trading Ice WTI contracts. Keep these specifications in mind when trading the Ice WTI contract, and always consult with your broker if you have any questions.