The Crude Oil Option Chain For example, a trader named Helen purchased American-style call options on April 2022 crude oil futures at $90 per barrel. At that price, Helen enters into a long futures position in the contract. She has two options: wait for the option to expire or close the position immediately, which would lock in her price of $6 per barrel. In the latter case, she would make a profit of $6 per barrel. Price of Crude Oil on the New York Mercantile Exchange (NYMEX) The price of crude oil on the NYMEX fluctuates greatly depending on various factors. The demand for oil in China is expected to rise five to seven percent per year, and Asian countries are increasingly consuming more oil than North America. Speculative buying and selling of oil also affects the price. Traders' portfolios change with market conditions, and insignificant news or changes in expectations can greatly influence prices. The price of crude oil fluctuates daily, with more volatile prices than curre...
Why is Stock Settlement Two Days After a Trade? The most common question you might be asking yourself is why is stock settlement two days after a trade? Most trades are settled within three days, and the process is usually trouble-free. However, a three-day delay can cause systemic failures. Let's explore the differences between T+2 and T+1 and see why settlement is delayed. In the end, the answer to the question "Why is stock settlement two days after a trade?" may surprise you. T+2 Stocks are unique among asset classes, because the settlement and clearing process takes two business days. Unlike equity options, treasury bonds, and futures, which settle trades within one business day, stocks require two days for the trade to clear and settle. This process is known as T+2, and other asset classes settle trades on trade date plus one day. However, the longer the settlement process, the higher the risk for investors and securities firms. This time-consuming process is refe...