Oil Trading (2026): How to Trade Crude Oil CFDs
BY TIOmarkets
|March 5, 2026Crude oil is one of the most actively traded commodities in the world. Its price influences energy costs, inflation, transport, manufacturing, and a wide range of other economic indicators, which makes it a market that attracts both short-term traders and those looking to take longer-term positions based on macroeconomic trends.
With TIOmarkets, traders can access oil markets through CFDs on two major benchmarks: USOIL (West Texas Intermediate crude) and UKOIL (Brent crude). This guide covers what oil CFD trading involves, how the two instruments differ, the contract specifications available on TIOmarkets, and what to consider before placing a trade.
What Is Oil CFD Trading?
A CFD, or contract for difference, is a financial instrument that allows you to take a position on the price movement of an underlying asset without owning it. When you trade oil CFDs, you are speculating on whether the price of oil will rise or fall over a given period, rather than buying or selling physical barrels.
If you believe the price of oil will rise, you open a long (buy) position. If you believe it will fall, you open a short (sell) position. Your profit or loss is determined by the difference between the price when you open the trade and the price when you close it, multiplied by the size of your position.
Because oil CFDs use leverage, you only need to deposit a fraction of the total trade value as margin to open a position. This means both potential gains and potential losses are amplified relative to the margin used. It is possible to lose more than the initial margin if the market moves significantly against you. Always confirm the applicable trading conditions and protections with TIOmarkets before opening an account.
USOIL vs UKOIL: Understanding the Two Benchmarks
TIOmarkets offers two oil CFD instruments: USOIL (Spot Crude Oil) and UKOIL (Spot Brent Oil). They are based on two different crude oil benchmarks widely used in global energy markets.
USOIL tracks West Texas Intermediate (WTI) crude oil, produced primarily in the United States and deliverable at Cushing, Oklahoma. WTI is the primary pricing benchmark for oil traded in North America and is generally considered a lighter and sweeter grade of crude than Brent.
UKOIL tracks Brent crude, extracted from the North Sea and serving as the global benchmark for a large portion of internationally traded oil, including supply from Europe, Africa, and the Middle East. Brent is often priced at a slight premium to WTI, though the spread between the two benchmarks fluctuates based on supply, demand, and market conditions.
For most CFD traders, the practical differences are the price level, cost structure, and trading hours, which differ between the two instruments on TIOmarkets. Both are quoted in US dollars per barrel and traded in lots on MT4 and MT5.
Because both USOIL and UKOIL are priced with reference to underlying futures contracts, traders should be aware that price adjustments may occur around futures expiry periods. TIOmarkets does not publish specific details about how such adjustments are handled on its instrument pages. Traders should check with TIOmarkets directly if holding positions around futures expiry dates.
USOIL and UKOIL Contract Specifications
The following specifications are confirmed from the TIOmarkets USOIL and UKOIL instrument pages. Swap rates are not published on the instrument pages and should be checked inside the MT4 or MT5 trading platform directly.
USOIL (Spot Crude Oil)
The standard lot size for USOIL is 1,000 barrels. The minimum trade volume is 0.01 lots, representing 10 barrels. Spreads are floating and variable, sourced from TIOmarkets' liquidity providers. Minimum spreads may start from 0.03, though actual spreads are typically higher depending on market conditions, and can widen further during periods of high volatility or low liquidity.
The margin requirement for USOIL is 4%, corresponding to a maximum leverage of 1:25, subject to change depending on market conditions and applicable regulatory requirements. Trading conditions vary and traders should confirm applicable conditions before opening an account.
Trading hours for USOIL are Monday to Thursday 01:00 to 23:59 and Friday 01:00 to 23:45, MT server time (UTC+2). The market is closed on Saturday and Sunday. Trading hours are subject to change and should be confirmed in the MT4 or MT5 platform before trading.
UKOIL (Spot Brent Oil)
The standard lot size for UKOIL is also 1,000 barrels. The minimum trade volume is 0.01 lots (10 barrels). Spreads are floating and variable on the same basis as USOIL, with minimum spreads from 0.03 and actual spreads varying with market conditions.
The margin requirement for UKOIL is 4% (1:25 maximum leverage), subject to the same conditions as USOIL.
Trading hours for UKOIL are Monday to Thursday 03:00 to 23:58 and Friday 03:00 to 23:45, MT server time (UTC+2). UKOIL opens later than USOIL each day, reflecting differences in the underlying futures market schedules and liquidity provider arrangements. Both instruments are closed on Saturday and Sunday. Trading hours are subject to change and should be confirmed in the platform before trading.
Trading Costs: Spreads and Commission
Both USOIL and UKOIL carry variable spreads sourced from TIOmarkets' liquidity providers. Minimum spreads may start from 0.03, but actual spreads at any given time will depend on market conditions and liquidity. Spreads are typically tighter during periods of normal market activity and can widen significantly around major news events or during low-liquidity periods.
Commission depends on account type. Standard and VIP Black accounts carry $0 commission per lot. Raw account trades carry $6 commission per round turn lot, which is charged in addition to the spread.
Overnight swap charges apply to positions held past the daily rollover at 22:00 GMT, as stated on TIOmarkets' swaps page. Swap rates for USOIL and UKOIL are not published on the instrument pages and should be confirmed inside the MT4 or MT5 platform before holding positions overnight. Wednesday typically carries a triple swap to account for the weekend period, though this can vary by instrument.
What Drives Oil Prices
Oil prices are influenced by a range of supply and demand factors as well as broader macroeconomic and geopolitical forces. Understanding these drivers does not guarantee profitable trades, but it can help traders contextualise price movements.
OPEC and production decisions. The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) coordinate production levels among member countries. Decisions to cut or increase output can have significant and rapid effects on oil prices. These meetings and announcements are often high-impact events for oil traders.
Global demand conditions. Oil demand is closely tied to industrial activity, transport, and economic growth. Periods of strong global growth tend to support higher oil prices, while economic slowdowns can weigh on demand.
US inventory data. Weekly crude oil inventory reports published by the US Energy Information Administration (EIA) are closely watched by oil traders. Larger-than-expected inventory builds can indicate softer demand or oversupply, while draws can signal tighter supply. These releases can cause short-term volatility, particularly in USOIL.
Geopolitical events. Oil supply can be disrupted by conflict, sanctions, or instability in major producing regions. Such events can cause rapid and unpredictable price movements.
Currency movements. Oil is priced globally in US dollars. A stronger dollar can make oil more expensive for buyers in other currencies, which may weigh on demand and prices, though this relationship is not constant and should not be relied upon as a predictive model.
Seasonal demand patterns. Oil demand often follows seasonal tendencies, with higher consumption typically seen during winter months in the northern hemisphere and during the US summer driving season. These are general patterns rather than reliable rules.
Leverage, Margin, and Risk Management
Both USOIL and UKOIL carry a confirmed 4% margin requirement, corresponding to a maximum leverage of 1:25. This means that to open a position with a notional value of $7,000, for example 0.1 lots of USOIL at $70 per barrel, the margin required would be approximately $280. Leverage amplifies both gains and losses. A 1% move in the underlying price with 1:25 leverage results in a 25% movement relative to the margin used.
Typical margin call and stop out levels on TIOmarkets accounts are 100% and 30% of used margin respectively, though these may vary depending on account type and applicable trading conditions. When account equity falls to the margin call level, the trader is alerted. At the stop out level, positions may be closed automatically by the platform to limit further losses.
Orders are executed at the best available market price, which may result in positive or negative slippage during volatile conditions. There is no guarantee of a fill at the requested price on a market execution basis.
How to Trade Oil CFDs with TIOmarkets
TIOmarkets offers USOIL and UKOIL on both MT4 and MT5, across Standard, Raw, and VIP Black accounts. The steps below cover the general process for getting started.
The first step is to register a TIOmarkets account and complete identity verification. Verification is required before withdrawals can be made and involves providing proof of identity and proof of address. The minimum deposit to open a Standard account is USD $20 or currency equivalent, though the amount needed to trade oil meaningfully will depend on the lot size and leverage being used.
Once the account is funded, the next step is to download MT4 or MT5 from the client area and log in using the trading account credentials. USOIL and UKOIL can be found in the Market Watch window. If the symbols are not visible by default, right-clicking in the Market Watch window and selecting "Symbols" allows additional instruments to be added.
From the Market Watch window, right-clicking on either symbol provides access to the chart, the new order window, and the contract specification, where lot sizes, trading hours, and other parameters can be reviewed directly inside the platform.
A demo account is available and can be used to practise placing oil trades without risking real capital. Demo accounts often execute instantly and may not fully replicate live slippage conditions, so live performance may differ from what is observed in testing.
FAQ
Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & Countries included in the OFAC sanction list. The Company holds the right to alter the aforementioned list of countries at its own discretion.
TIOmarkets offers an exclusively execution-only service. The views expressed are for information purposes only. None of the content provided constitutes any form of investment advice. The comments are made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and its affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances, or needs. The content has not been prepared in accordance with any legal requirements for financial analysis and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits duplication or publication without explicit approval.
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