NYMEX West Texas Intermediate (WTI) Crude Oil Futures are the world’s most liquid oil contract, and regarded as a global benchmark for oil pricing. At 1/10 the size of the standard-sized contract, Micro Crude Oil futures (MCL) provide traders of all levels an efficient and cost-effective way to gain exposure to the crude oil market.
Learn the Benefits of Micro Crude Oil Futures in this 2 Minute Video!
More Precise Trade Management
The smaller contract size of Micro Crude Oil Futures means more precise trade management. At 1/10th the size of the benchmark WTI futures contract, Micro WTI Crude Oil Futures offer the same robust transparency and price discovery as the larger contract, but with smaller margin requirements, such as only $100 with NinjaTrader Brokerage.
Trade Crude Oil with Leverage & Deep Liquidity
Just like the standard Crude Oil Futures contract, Micro Crude Oil Futures are highly leveraged providing a powerful way to increase capital efficiency. The notional unit for the modest Micro Crude Oil contract is 100 barrels!
Both standard and Micro Crude Oil Futures are deep markets, providing no shortage of liquidity. Nearly 1.2 million contracts trade every day with over 2 million in open interest. This liquidity means you can get in and out of Micro Crude Oil trades with ease.
Close Ties to the Spot Market with Tax Benefits
WTI Crude Oil Futures are physically settled and closely connected to the spot market, earning the contract the status of “go-to” measure for the world’s oil prices. As an added benefit, oil futures traders are eligible for the 60/40 tax rule, allowing them to claim capital gains at a much lower rate than stocks or ETF’s.
The chart above, created for FREE using NinjaTrader, displays price action in Oil futures over the previous months. Moving averages showcase the recent bullish trend for Crude Oil futures. Plotted below the price action, you can see the popularity of Crude Oil futures by the volume traded per bar.
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