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CME Group is launching a new, smaller-sized futures contract on its global benchmark, WTI Crude Oil.
Micro WTI Crude Oil futures will be 1/10 the size of the standard-sized contract -providing market participants an efficient and cost-effective way to gain exposure to the crude oil market.
The standard Crude Oil contract has a notional value of 1,000 barrels times the agreed upon futures price, while the Micro WTI Crude Oil contract will have a notional value of 100 barrels times the agreed upon futures price. The tick increment will be one cent per barrel, making a one-tick move equivalent to one dollar.
Micro WTI Crude Oil futures will be listed monthly and expire one day prior to the expiration of the corresponding contract month of the standard contract.
For example, if the standard June Crude futures expire on Thursday, the June Micro Crude futures will expire on Wednesday.
The Micro WTI Crude Oil futures contract will be financially settled and available to trade on CME Globex Sunday through Friday, nearly 24 hours per day.
Benefits of the smaller contract
Benefits of the smaller contract can include:
- Access to CME Group’s global energy benchmark product
- Similar exposure without margin requirements of the standard sized contract
- Portfolio diversification
- Precision and flexibility in tailoring exposure and managing risk
The Micro WTI Crude Oil futures join the Micro product suite, providing additional trading opportunities in the most liquid commodities in the world.
If you’re looking for a smaller-sized contract to fit your trading needs, look no further than CME Group Micro futures contracts.
Test your knowledge
In case you didn’t know, the CFA Institute allows its members to self-determine and report continuing education credits earned from external sources. CFA Institute members are encouraged to self-document such credits in their online CE tracker. CME Institute offers a variety of courses, webinars, and white papers to support your professional education.