Crude Oil Futures
What are crude oil futures?
Crude Oil futures can provide individual investors with a way to participate in one of the world's most important commodity markets. Crude Oil futures are considered a key benchmark for the entire energy industry and can be used for both hedging and speculating. Crude oil is used for gasoline, diesel fuel, heating oil, and jet fuel. Crude Oil futures can fluctuate based on the geopolitical environment. CME Group provides access to E-mini Crude Oil and Micro Crude Oil futures contracts, which are ½ and 1/10 the size of a standard crude oil futures contract, respectively.
How to trade crude oil futures
Crude Oil futures, E-mini Crude Oil futures, and Micro WTI Crude Oil futures can be traded nearly 24 hours a day, 5 days a week on the thinkorswim® trading platforms. In addition to our advanced trading platforms, you also get access to market research, real-time crude oil futures quotes, specialized tools, and educational resources to support your trading.
Market price
Due to crude oil's value as a commodity worldwide, Crude Oil futures can be affected by a range of factors, including geopolitical events, natural disasters, changes in market supply and demand, and investor speculation. Make sure to understand these variables before investing.
Contract specifications
| | Symbol | Options Tradable on thinkorswim®2 | Multiplier | Minimum Tick Size and Value | Settlement | Trading Days/Hours |
|---|---|---|---|---|---|---|
| Crude Oil | /CL | Yes | $1,000 | 0.01 = $10.00 | Physical1 | 6 p.m. ET Sunday to 5 p.m. Friday |
| E-mini Crude Oil | /QM | No | $500 | 0.025 = $12.50 | Cash | 6 p.m. ET Sunday to 5 p.m. Friday |
| Micro WTI Crude Oil | /MCL | Yes | $100 | 0.01 = $1.00 | Cash | 6 p.m. ET Sunday to 5 p.m. Friday |
| Brent Crude Oil | /BZ | No | $1,000 | 0.01 = $10.00 | Cash | 6 p.m. ET Sunday to 5 p.m. Friday |
Crude Oil Futures FAQs
Investors can potentially use crude oil futures to hedge against investments in their portfolio that may be sensitive to crude oil price changes.
Investors and traders might use crude oil futures to speculate on the future price of crude oil, and they might be used as an alternative to oil and gas stocks. Crude oil prices can change due to a number of factors, but primarily from the perceived changes in supply and demand that come from both overall output worldwide and the economic health of the industry's major consuming countries. Options on crude oil and Micro WTI Crude Oil futures are also available.
It is important to understand the benefits and risks involved with crude oil futures before placing a futures trade. With crude oil futures, you can trade nearly 24 hours a day, 5 days a week, and take advantage of potential trading opportunities regardless of market direction. Crude oil futures also provide the ability to trade with greater leverage and might allow a more efficient use of capital. However, trading leveraged products like crude oil futures is not suitable for all investors. It involves risks that greater losses can occur with smaller market movements, and more than your initial investment can be lost.
Crude oil futures come in different contract sizes to accommodate various trading needs and capital requirements. Standard Crude Oil futures (/CL) represent 1,000 barrels, E-mini Crude Oil futures (/QM) represent 500 barrels (1/2 of standard contracts), and Micro WTI Crude Oil futures (/MCL) represent 100 barrels (1/10 the size of standard contracts). Smaller contracts require less capital and can typically offer more flexibility for managing risk or testing strategies.
Standard crude oil futures are physically settled at the exchange level, but physical delivery is not permitted through Schwab. Clients must close or roll their positions prior to expiration. E-mini and Micro crude oil futures are cash settled.
Ready to trade futures?
Not yet a Schwab client?
Open a brokerage account online, then go to the Getting Started page for next steps.
Already a client?
Use your eligible brokerage account to apply for a futures trading account.