We are happy to announce that the Alfa-Forex company reduced the oil CFD spread by 25% to 5 points. New advantageous spreads will allow you to cut the costs when trading oil CFDs. “Black gold” is one of the most volatile and liquid assets in the market, while frequently issued oil fundamentals allow getting potential profits on price movements every week.
US Department of Energy issues oil inventories forecasts every Wednesday. Occasionally they generate strong price movements of the Brent* and WTI** CFDs that are provided for by Alfa-Forex.
Let us calculate the potential profit which might have been received after last week oil inventories reports. March 22, 2017, Department of Energy announced that crude oil reserves outstripped forecasts by 2 million barrels. As soon as the data were announced the oil price consistently decreased from $50.22 to $49.67 per barrel.
Let us calculate the potential profit you might have got, trading the news:
- The last week price movement would have brought $47 from a 1-lot position: 0.01 [quoting accuracy] x 100 [contract size] x (55 points [price drop] – 8 [the spread value before reduction]) = $47;
- With the new spread amount, which is 2 points lower, your potential profit might have made $49.
Thus, it has become more advantageous to trade important economic news concerning black gold.
We wish you a good luck in trading!
*BRENT (LCO) – is a grade of the oil produced in the North Sea mainly in the territory between the Scotland and Norway coasts. It is a benchmark for pricing 70% oil brands all over the world.
**West Texas Intermediate or WTI (CLF) — is a grade of the oil, used as a benchmark in oil pricing. WTI makes about 1% of the oil produced in the world.
The information that is provided in this news feed must not be considered as investment advice or personal recommendation. It must not be used or considered as an offer or solicitation of an offer to buy or to sell any trading instrument. Although the information in this document is based on sources the Company believes to be reliable, no representation or warranty, express or implied, is made by the Company. The Company makes no warranty or representation that any trading instruments referred to herein are suitable for you, therefore potential investment decisions following this news feed should seek appropriate independent advice. Positions in financial instruments involve risks. Trading in leveraged products such as forex and CFDs puts your capital at risk. You should not risk more than you can afford to lose; it is possible that you may lose more than your initial investment. For additional information, please read the Risk Warning of Alfa-Forex.