Leading Global Forex Brokerage firm, Axiory Global Ltd is all set to enter a new era in oil trading with two brand new products that have been especially designed to combat negative oil prices: the US Oil Index and the UK Oil Index. Last month saw a historic crash when West Texas Intermediate (WTI) crude oil, May futures contracts, dropped below $0 for the first time ever. As a result, Axiory Global sprang into action by disabling trading on WTI owing to exceptionally high volatility and adding Brent Crude Oil to its assets.
The US Oil Index and the UK Oil Index are rebased at $100, which means that even if the price of oil drops into negative territory, the indices will remain $100 higher. For example, if Brent oil drops to $-5, the UK Oil Index will trade it at $95.
Both products are independent tradable instruments, but their price movements are linked to the movement of oil prices + $100. Their price movement can be analyzed the same way as a trader would analyze oil by making use of the same fundamental and technical indicators in order to open and close positions.
Roberto d’Ambrosio, Axiory’s CEO says, “Being an index and not a future means it will have smoother behavior, although we still expect a lot of volatility when this will happen during the settlement, but without the incredible impact it could have if the product was based directly on the future expiring the day that one has to roll it over.”
All Axiory risk management tools are applicable on the US Oil Index and UK Oil Index. Negative balance protection, stop loss and take profit, autochartist and Axiory Strike Indicator. The indices are available on all account types and on both MT4 and cTrader platforms. As the market evolves so does trading, and Axiory is determined to put its traders first and ensure they always have access to the newest and best ways that enhance their trading experience.