Close Navigation
Learn more about IBKR accounts

Hydrocarbons

Trading Term

Hydrocarbons are organic compounds made entirely of hydrogen and carbon atoms, and they form the basic building blocks of fossil fuels such as crude oil, natural gas, coal, and petroleum products. They are produced naturally from the decomposition of plant and animal matter over millions of years under heat and pressure in the Earth’s crust, making them a nonrenewable energy source.

Hydrocarbons are critical to the global energy economy, as they are burned to produce heat, power engines, and generate electricity. They are also essential feedstocks in the chemical and petrochemical industries, used to manufacture plastics, synthetic fibers, fertilizers, and pharmaceuticals.

However, burning hydrocarbons releases carbon dioxide (CO₂) and other greenhouse gases, making them a major contributor to climate change and air pollution. As a result, there is a growing global push to transition from hydrocarbon-based energy to renewable alternatives like wind, solar, and bioenergy.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.