ActivTrades Launches new CFD Contracts on Spot Oil Price
launched two new CFDs on the spot price of the world’s two main oil benchmarks
that offer traders the opportunity to take a position on the price of oil
without having to worry about the expiry of the underlying contracts.
The products, which are available for Brent and WTI, were developed in response to the dramatic plunge in oil prices earlier this year when WTI even sunk into negative territory for the first time in the benchmark’s history. A perfect storm of a global supply surplus at the same time as the locking down of economies caused demand to plummet prompted the May WTI contract to be so unpopular as it neared expiry that traders were willing to pay for the oil to be taken off their hands.
How to invest in oil spot price?
ActivTrades, a brokerage that specialises in CFDs, reacted swiftly to this unprecedented event to create two bespoke products that don’t have an expiry date, removing this exposure that traditional CFDs on oil futures typically have.
“We developed these products extremely quickly after the unforeseen dive in prices of near-expiry oil futures this spring,” said Alex Pusco, CEO of ActivTrades. “We wanted to offer our clients an alternative solution to be able to gain exposure to oil prices without having to worry about rolling over their positions.”
These new oil CFDs are the latest in a growing number of financial products offered by the brokerage, with over 100 new CFDs added on share markets around the world so far this year. The new batch includes CFDs for shares on Zoom and American Airlines amid high demand from traders in recent months.
Alongside these recent additions, the traditional CFDs, including ones on Brent and WTI futures, remain on offer with zero commission payable, providing traders with a wide range of options to ensure the ideal trading solution is available to them.
All these products are now available on the ActivTrader platform, which was successfully rolled out last year. ActivTrader, being both easy to use as well as providing fast execution of orders, has proven very popular with the majority of ActivTrades’ clients having now switched to this new platform.