[XM Trading: For Beginners] Energy Stocks and Features

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XMtrading will be a foreign exchange company, but the stocks handled are not only foreign exchange, but also stocks, virtual currencies, precious metals, energy, etc. Here, we have articles on the stocks of energy we handle and their characteristics.

Energy list

Here is the list of energies:

GSOILlondon diesel
NGASNatural gas
OILWTI crude oil
OILMNWTI Crude Oil Mini

BRENTCrude oil

Brent crude oil comes from the North Sea between Norway and the United Kingdom. It is one of the main crude oil brands and is said to be a high-quality light oil. Brent crude tends to move in tandem with prices of abundant refined petroleum in Europe, Africa and the Middle East. Brent crude oil is a light oil with a low sulfur content.

london diesel

London gas oil is targeted for light oil after refining crude oil. It should be noted that the price is set more than 10 times higher than crude oil because of the refining process. London gas oil tends to move in the same way as crude oil as a price movement habit. However, caution should be exercised as large movements occur on rare occasions.

Natural gas

It refers to natural gas extracted in Russia. In addition to Russia, natural gas is extracted in the Middle East and Northern Europe, but Russia has an overwhelming share of the market. Since Russia is currently at war with the rest of the world, natural gas trading has the potential for large price fluctuations, so political news must be obtained at any time.

WTI crude oil

WTI crude oil is the general term for West Texas Intermediate crude oil originating from West Texas in the United States. It accounts for 6% of the crude oil produced in the United States and 1 to 2% in the world, so it is a fairly major brand. WTI crude oil is said to be suitable for refining into gasoline and kerosene because of its low sulfur content.

WTI Crude Oil Mini

The WTI Crude Oil Mini is a reduced trading volume per lot of WTI Crude Oil. WTI crude oil trades at 1 lot = 100 barrels, while WTI crude oil mini trades at 1 lot = 10 barrels. In other words, this brand is very suitable for those who want to start with small amount trading or trial trading, so it can be said that the risk is kept low.

oil trading rules

Please keep in mind that there are the following rules for crude oil trading on XM.

24 hours tradeable

Crude oil trading can be traded 24 hours a day, excluding the one-hour rest period, and the settlement deadline called the contract month is determined, so the settlement deadline is set every month and forced settlement is performed. A contract month is the date by which the positions held must be settled by this month.

Leverage and Margin Requirements

Leverage varies by stock. The maximum leverage is as follows. And the required margin will change accordingly.

SymbolLeveragemargin requirement

trading hours

Please note that trading hours vary depending on the stock. The difference for each brand is described based on Japan time.

Summer TimeWinter Time

swap point

Since crude oil does not have interest or dividends, only the difference between buying and selling is simply profit. At the same time, there are no swap points. Also, there are dividends in stock investments, but there are no dividends in crude oil.

wide spread

Spreads are often said to be wide on XM trading, and this trend is particularly pronounced in the case of energy. Since the spread is at least 4 pips to 5 pips, the hurdle to making a profit is high. Therefore, it can be said that it is suitable for day trading and swing trading, not for scalping trading.