Please note that the Company starts offering a new instrument: WTI (CFD on US WTI Crude Oil Cash), this instrument will be available for trading starting Monday, May 4th, 2020 (Effective Date).
Product specifications will be made available on the MT4/5 terminal and the Company’s website on the Effective Date.
We would like to note that a single Futures contract is being used as a basis, currently December 2020 Futures contract, with a discount to the rate (currently around $15.50) and a regular adjustment by a 0.61% daily increment. This means that the price of the WTI Spot (Cash product) product will increase by 0.61% per day to reach the level of the December 2020 Futures contract by the time of expiry. This 0.61% daily move will be offset by the SWAP rates applied to open positions each day.
In case the underlying December 2020 Futures contract becomes disorderly in the future (price goes negative or falls below $5), the Company will again rebase the WTI Spot (Cash product), locking in a new discount factor to the chosen Futures contract, and update the SWAP rates accordingly.
The TeleTrade Team