The following article is intended to provide a general introduction to Crude Oil Index Contracts for Differences (CFDs) issued by IBKR.
For information on Other CFDs click:
Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
59.7% of retail investor accounts lose money when trading CFDs with us.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
ESMA Rules for CFDs (Retail Clients of IBKRs European entities, including so-called F segments)
The European Securities and Markets Authority (ESMA) enacted new CFD rules effective 1st August 2018. The rules have subsequently been permanently adopted by local regulators.
The rules include: 1) leverage limits on the opening of a CFD position; 2) a margin close out rule on a per account basis; and 3) negative balance protection on a per account basis.
The ESMA Decision is only applicable to retail clients. Professional clients are unaffected.
Please refer to the following articles for more detail:
ESMA CFD Rules Implementation at IBKR (UK) and IBKR LLC
ESMA CFD Rules Implementation at IBIE
Introduction
IBKR CFDs on US and UK crude oil are available to customers who have, or qualify for, CFD permissions.
The CFDs enable clients to trade the most liquid US and UK oil markets in a size as small as 1 barrel.
Contract specifications:
| Instrument Name | IB Symbol | Instrument Type | Symbol Currency | Tick Size | Tick Value | Multiplier | Trading Hours | Break | Time Zone |
| US Crude Oil | IBUSOIL | Rolling Futures | USD | 0.01 | USD 0.01 | 1 (1 CFD = 1 Barrel) | 18:00 - 17:00 | 17:00 - 18:00 | EST |
| Brent Crude Oil | IBUKOIL | Rolling Futures | USD | 0.01 | USD 0.01 | 1 (1 CFD = 1 Barrel) | 1:00 - 23:00 | 23:00 - 1:00 | London |
Crude Oil CFD Price Determination
The CFDs are rolling futures combining the near and next month related futures, with the price of the CFD being the weighted average of the relevant futures, plus a spread added by IBKR’s liquidity provider.
The weights of the near and next month futures are rebalanced every calendar day. For example:
| Date | Near weight | Next weight | Change |
| 2-Jan-2025 | 0.5 | 0.5 | |
| 3-Jan-2025 | 0.4643 | 0.5357 | 0.0357 |
| 6-Jan-2025 | 0.3571 | 0.6429 | 0.1072 |
| 7-Jan-2025 | 0.3214 | 0.6786 | 0.0357 |
The change from 3-Jan to 6-Jan includes the weekend days.
The Roll Adjustment
However, the price difference between the two futures results in a “false” P&L being incorporated into the price of the CFD.
To illustrate, let’s assume that the underlying price of oil does not change, and that the Next futures contract is priced lower than the Near futures contract (as is the case in February 2025). As we roll from the Near to the Next futures contract the price of the CFD will go down even though there has been no change in the underlying price of oil. If the CFD is sold it will realize a loss, which is the “false” P&L due to the difference in contract price levels rather than the underlying market.
In order to remove this “false” P&L we calculate a daily cash adjustment at the end of every trade date, for example:
| Weights | End Of Day Price | |||||
| Date | Near Futures Expiration | Next Futures Expiration | Near Futures Expiration | Next Futures Expiration | Calculation | Value of 1 CFD |
| 2-Jan-2025 | 0.4667 | 0.5333 | 73.13 | 72.5 | (0.4667*73.13) + (0.533*72.5) | 72.79402 |
| 3-Jan-2025 | 0.4333 | 0.5667 | (0.4333*73.13) + (0.5667*72.5) | 72.77298 | ||
| Difference: | (0.02104) |
In the above example the underlying price did not change, but because of rolling the futures on 1/2/2025 every long CFD will receive $0.02104 and every short WTI CFD position will pay $0.02104 per contract.
The roll-adjustments are calculated on a calendar day basis which will affect positions held over the weekend. The rates applicable over the weekend will be paid or charged on a Friday. Clients can track the adjustment in the Client Activity Statement, under “Daily Roll Adjustment”.
Low Commissions: Unlike other CFD providers we charge a transparent commission of just 0.015%, IBKR does not widen the quotes it receives from its liquidity provider.
Financing Rates: Unlike other CFDs we do not charge financing for Crude Oil CFDs.
Margin Efficiency: Our Crude Oil CFDs are margined at the same low rates as the related futures, adjusted for contract size (subject to a regulatory minimum of 10% for retail clients).
Trading Permissions: General CFD permissions (Stock, Index and Forex CFDs).
Market Data Permissions: Index CFD market data is free, but permission is required for system reasons.
Below are some useful links with more detailed information on IB’s CFD offering:
Frequently asked Questions
Are short Crude Oil CFDs subject to forced buy-in?
No. As the reference instrument is a future, the Crude Oil CFD is not affected by stock loan availability.
Can anyone trade our CFDs?
All clients can trade our CFDs, except residents of the USA, Canada, Hong Kong, New Zealand and Israel. There are no exemptions based on investor type to the residency-based exclusions.
What do I need to do to start trading CFDs?
You need to set up trading permission for CFDs in Client Portal and agree to the relevant trading disclosures. If your account is with IBKR (UK) or with IBKR LLC, we will then set up a new account segment (identified with your existing account number plus the suffix “F”). Once the set-up is confirmed you can begin to trade. You do not need to fund the F-account separately, funds will be automatically transferred to meet CFD margin requirements from your main account.
If your account is with another of our entities, only the permission is required; an additional account segment is not necessary.
Are there any market data requirements?
The market data for our Index CFDs is free, but you need to subscribe to it for system reasons. It is a global permission (like FX), so you only need to subscribe once (and if you already have the index CFD market data subscription you do not need to do anything to receive live market data for the Crude Oil CFDs). If you need to subscribe, log into Client Portal and click the User menu (head and shoulders icon in the top right corner) followed by Settings. Under User Settings find Trading Platforms and select Market Data Subscriptions. Then select the Configure (gear) icon next to Market Data Subscriptions. Click the Configure (gear) icon next to Current GFIS Subscriptions to review what other services you may be interested in. Alternatively you can set up an Index CFD in your TWS quote monitor and click the “Market Data Subscription Manager” button that appears on the quote line.
How are my CFD trades and positions reflected in my statements?
If you are a client of IBKR (U.K.) or IBKR LLC, your CFD positions are held in a separate account segment identified by your primary account number with the suffix “F”. You can choose to view Activity Statements for the F-segment either separately or consolidated with your main account. You can make the choice in the statement window in Client Portal.
If you are a client of other IBKR entities, there is no separate segment. You can view your positions normally alongside your non-CFD positions.
Can I transfer in CFD positions from another broker?
We do not currently have a facility for transferring Index CFD positions.
In what type of accounts can I trade CFDs e.g., Individual, Friends and Family, Institutional, etc.?
All margin and cash accounts are eligible for CFD trading.
What are the maximum positions I can have in a specific Index CFD?
There is no pre-set limit for position size, but please be aware that trade-size restrictions apply to Index CFDs limiting each execution to the displayed bid/ask size. Orders are accepted in larger sizes but submitted for execution in sizes that correspond to the quoted size.
Can I trade CFDs over the phone?
No. In exceptional cases we may agree to process closing orders over the phone, but never opening orders.