Heating Oil (HO) Futures Contract Specifications

Energy

Heating Oil Futures (HO) track the price of No. 2 heating oil, which is used for residential and commercial heating. These contracts are sensitive to weather patterns and crude oil prices.

Contract Specifications

Detailed specifications for trading this futures contract

Contract Size

42,000 U.S. gallons (1,000 barrels)

Tick Size

0.0001 per gallon ($0.0001)

Tick Value

$4.20 per tick

Point Value

$42.00 per point ($0.01 per gallon)

Trading Hours

Sunday to Friday, 5:00 PM to 4:00 PM CT (with a 1-hour daily trading halt from 4:00 PM to 5:00 PM CT)

Platform Symbol

Margins

Check with your broker for the latest margin rates and details

Why Trade Heating Oil (HO) Futures?

Key benefits and characteristics of this futures contract

Weather-sensitive pricing

Seasonal trading patterns

Correlation with crude oil

Extended trading hours

Portfolio diversification

High liquidity during winter months

Position Sizing for Heating Oil (HO) Futures

Example calculation for proper position sizing based on risk tolerance

For Heating Oil (HO):

Tick Size: 0.0001 per gallon ($0.0001)

Tick Value: $4.20 per tick

Point Value: $42.00 per point ($0.01 per gallon)

If you want to risk $500 with a 12-point stop loss:

Risk per Contract = Stop Loss in Points × Point Value = 12 × 42.00 ($0.01 per gallon) = $ 504

Maximum Contracts = Risk Amount ÷ Risk per Contract = $ 500 ÷ $ 504 = 1 contract