Micro Oman Crude Oil Futures

Symbol OMOIL

Contract Size 100 barrels

Trading Hours Monday to Friday (10am to 3pm)

Leverage 5 - 10x leverage

Dubai Financial Market (DFM) launches the Micro Oman Crude Oil Futures in collabration with Dubai Mercantile Exchange (DME).

For the first time, investors have this unique opportunity to access one of the most significant asset classes in the region.

Contact Specifications

Product Micro DME Oman Crude Oil Futures

Symbol OMOIL

Underlying DME Oman Crude Oil Futures

Currency USD

Contract Size 100 Barrels

Price Quotation U.S. dollars and cents per barrel

Maturity Monthly contracts for the next twelve months forward

Settlement Type Cash settled

View full contract specs

What are DME Oman Crude Oil Futures?

DME is the premier international energy exchange in the middle east. The exchange was established 15 years ago to create a pricing point for crude oil produced in the region and exported to Asia through its DME Oman Futures Contract.

Middle east national oil companies use the contract to price their export of crude oil, including Saudi Arabia, Kuwait, Oman, Bahrain, and Dubai, and hence the contract is pricing 5.2 million barrels per day.

18 billion barrels have been traded over the exchange and 2.5 billion barrels delivered since the launch.

What are futures contracts?

Futures are derivative contracts that allow investors to utilize larger leverage, hedge their portfolio, and benefit from short selling during a downward market. It’s a legal agreement between two parties to buy or sell a set amount of an asset at an agreed-upon future date with a price that is set today.

How do futures work?

Futures contracts allow you to gain exposure and benefit from the increase and decrease in the price.

1. Buy or sell?

Micro Oman Crude Oil (OMOIL) Price Today

$110.00

What do you think will happen to the price?

Micro Oman Crude Oil (OMOIL) Up

Micro Oman Crude Oil (OMOIL) Down

You should Buy oil futures

2. What's Margin or Leverage?

Buying Oil Barrel

Buy

$10,000 Worth of Oil barrels

Pay

$10,000 at the time of purchasing

Pay full amount

The impact of leverage: If your return is $1,000 and you bought Oil barrels and paid $10,000 your rate of return would be $1,000/$10,000 = 10%

Buying OIl Futures

Buy

$10,000 Worth of Oil Futures

Pay

10-15% of the value

Pay initial margin only

The impact of leverage: If your return is $1,000 and you bought Oil futures and paid $1,500 (15% of $10,000) your rate of return would be $1,000/$1,500 = 66%

3. How is the profit calculated?

Let’s imagine that per barrel oil price goes from

$110

$100

SCENARIO 1 (SELL) If you expected the price to go down and went short (sold a contract) you would have made a profit because the price went down

Original value $110 x 100 Barrel = $11,000

New Value $100 x 100 Barrel = $10,000

Your profit is the difference in value: $1,000

SCENARIO 2 (BUY) If you expected the price to go up and went long (bought a contract) you would have made a loss

Original value $110 x 100 Barrel = $11,000

New Value $100 x 100 Barrel = $10,000

Your loss is the difference in value: $1,000

Ready to join DFM's Futures platform?

1. Apply for investor number (NIN)

You can apply for investor number (NIN) using DFM mobile app or through official DFM website. Apply for NIN with DFM

2. Contact one of the broker members

Refer the partners below for more information such as contact details, website and email.

3. Start trading

You can trade through the channels provided by the broker such as their a mobile app, web platform, or through the phone