Heating Oil (HO) Futures Contract Specifications

What Are Heating Oil (HO) Futures?

Heating Oil Futures (HO) provide traders with exposure to heating oil/diesel fuel prices. These contracts allow for speculation on distillate fuel price movements, hedging heating and transportation fuel costs, or diversifying energy investment portfolios with exposure to middle distillates.

Contract Size

Contract Size: 42,000 gallons (1,000 barrels)

Example: This contract size allows traders to gain exposure to energy with controlled leverage and risk.

Tick Value and Increment

  • Tick Size: 0.0001 USD per gallon
  • Tick Value: $4.20 per tick
  • Point Value: $420.00 per 0.01

These specifications make Heating Oil (HO) Futures suitable for traders seeking exposure to energy markets.

Trading Hours

Heating Oil (HO) Futures trade with extended hours, providing flexibility for traders in different time zones.

  • Trading Hours: Sunday to Friday, nearly 24 hours a day with a short break
  • Time Zone: Central Time (CT)

Trading Symbol

Platform Symbol: HO

Margins

To trade Heating Oil (HO) Futures, you'll need to meet specific margin requirements. Check with your broker for the latest margin rates and details.

Why Trade Heating Oil (HO) Futures?

  • Exposure to heating and transportation fuel markets
  • Seasonal trading opportunities based on winter heating demand
  • Effective hedging tool for businesses in transportation and heating sectors
  • Trading opportunities based on spread relationships with crude oil
  • Standardized contract specifications and regulated exchange

Position Sizing for Heating Oil (HO) Futures

Proper position sizing is crucial when trading Heating Oil (HO) Futures. Use our position size calculator to determine the optimal number of contracts based on your risk tolerance and account size.

Position Size Calculator Example

For Heating Oil (HO) Futures (HO):

  • Tick Size: 0.0001 USD per gallon
  • Tick Value: $4.20 per tick
  • Point Value: $420.00 per 0.01

If you want to risk $500 with a 10-point stop loss:

Risk per Contract = Stop Loss in Points × Point Value = 10 × 420.00 per 0.01 = $4200

Maximum Contracts = Risk Amount ÷ Risk per Contract = $500 ÷ $4200 = 0 contracts