Energy futures contracts are a tradable instrument to buy or sell an energy-based product like crude oil, natural gas, gasoline, or heating oil. Each of these exchange traded contracts has a unique set of contract specifications for point value, expiration date, and delivery method.
Traders can actively buy or sell energy futures contracts at current market prices virtually 24 hours a day, through a well-regulated futures broker like NinjaTrader. Energy futures gives traders direct trading exposure to these important global markets.
Energy futures provide traders with many more advantages and flexibility than trading these same instruments using ETFs or energy stocks with their many limitations. Energy futures offer extended trading hours, the ability to go short easily, and lower capital requirements.
Crude oil futures are the most actively traded energy futures and are the benchmark price for crude oil globally. Natural gas futures are also heavily traded due to the wide utility of natural gas in transportation, electricity generation, and industrial uses.
Futures trading requires a funded account at a licensed futures broker dealer. Traders can then buy and sell the desired futures contract by putting up a good faith margin deposit to cover potential losses.
Yes, you can trade energy futures with NinjaTrader. NinjaTrader is an industry-leading futures broker centralizing all the tools and services needed for both new and experienced traders to enter the global futures markets. NinjaTrader offers a comprehensive set of cutting-edge trading tools for both new and experienced futures traders. You can place orders and analyze the energy futures markets from multiple platforms including the award-winning NinjaTrader Desktop.
Trading energy futures comes with a number of potential risks. It is important for traders to always be aware of the
factors that can affect the price of the futures that they are trading and following a risk management plan should
be a critical component of all trading strategies. As futures trading offers greater leverage for potentially increased
profits, that leverage also increases the possibility of greater losses. Traders should only trade with risk capital. Risk capital is money you can afford to lose without affecting your lifestyle or changing your retirement horizon.
factors that can affect the price of the futures that they are trading and following a risk management plan should
be a critical component of all trading strategies. As futures trading offers greater leverage for potentially increased
profits, that leverage also increases the possibility of greater losses. Traders should only trade with risk capital. Risk capital is money you can afford to lose without affecting your lifestyle or changing your retirement horizon.