Energy

Crude oil and natural gas, traded as contracts on the account: prices driven by OPEC, inventories, weather and geopolitics.

Energy on a trading account means crude oil first, natural gas second. Two crude benchmarks set the price for most of the world: WTI, delivered in the United States, and Brent, priced off the North Sea. Through a broker you trade a contract on one of them, USOIL or UKOIL by most tickers, derived from the futures listed in New York and London.

The US Energy Information Administration lists what moves the price: OPEC production decisions, spare capacity, the strength of the global economy, weekly inventory numbers, and geopolitical events that threaten supply. Those last two are what make oil a headline market. A Wednesday inventory report or a shipping incident in the Gulf can move the price several percent in minutes.

Natural gas is the wilder cousin. Its price depends on weather forecasts and storage levels, it is far more seasonal, and its daily ranges are routinely two or three times those of crude. Contracts on gas also roll monthly, and the roll can show up as a price jump on the chart that no strategy caused.

A strategy tagged Energy on Javlot trades these contracts. The exposure to scheduled news is higher here than in metals or forex, and the size of a position relative to that news is what its risk profile is really describing.

Glossary entries are educational. They describe how a term is commonly used in automated forex investing, including on the Javlot platform. They are not a personalized recommendation and not a forecast. Past performance does not guarantee future results.