Buying crude oil futures means opening a futures brokerage account, getting approved for futures trading, and placing an order on a contract that represents 1,000 barrels of oil. The most widely traded contract is WTI (West Texas Intermediate) Light Sweet Crude Oil, listed on the CME Group’s NYMEX exchange under the ticker symbol CL. You can also trade a smaller version, Micro WTI Crude Oil (MCL), which represents just 100 barrels and requires significantly less capital.
What a Crude Oil Futures Contract Represents
A standard WTI crude oil futures contract (CL) gives you exposure to 1,000 barrels of oil. The minimum price movement is $0.01 per barrel, which equals $10 per contract. That means if oil moves from $65.00 to $66.00 per barrel, one contract gains or loses $1,000. This leverage is what makes futures attractive to traders, but it also means losses can add up quickly.
The Micro WTI contract (MCL) covers 100 barrels, exactly one-tenth the size of the standard contract. Its minimum tick is also $0.01 per barrel, but that equals just $1.00 per contract. A $1.00 move in oil price translates to a $100 gain or loss on a single Micro contract. For newer traders or those with smaller accounts, the Micro contract offers a way to participate without the full-size capital commitment.
Opening and Getting Approved for a Futures Account
You can’t trade futures through a basic stock brokerage account. You need either a dedicated futures account or futures trading approval added to an existing brokerage account. Major brokerages like Charles Schwab, Interactive Brokers, and TD Ameritrade (now part of Schwab) all offer futures trading, as do specialized futures brokers like NinjaTrader and AMP Futures.
The approval process involves a few requirements. At Schwab, for example, you need margin approval and a minimum account balance of $1,500. If you want to trade futures inside an IRA (Traditional, Roth, Rollover, or SEP), you’ll need at least $25,000 in net liquidation value plus approval for margin and option spreads. During the application, you’ll be asked about your trading experience, income, net worth, and risk tolerance. Meeting the minimums doesn’t guarantee approval; the broker reviews your full financial picture before granting access.
How Much Capital You Actually Need
Futures trading uses margin, but not the same kind as stock margin. In futures, margin is a performance bond, a deposit you put up to hold a position. You don’t borrow the rest of the contract’s value; instead, your account is credited or debited daily based on price movement.
For a standard WTI crude oil contract, the exchange-set maintenance margin is roughly $11,000 to $11,400 per contract for near-month contracts as of early 2026. Initial margin, which is the amount required to open a position, is typically set by your broker at a level slightly above maintenance margin. Many brokers set initial margin at 110% of the maintenance requirement or higher. So opening a single CL contract could require $12,000 to $15,000 or more in your account, depending on the broker.
Margin requirements drop for contracts further out in time. For example, contracts expiring in late 2026 or early 2027 carry maintenance margins closer to $5,000 to $7,000. But most retail traders focus on near-month contracts where volume and liquidity are highest.
For Micro WTI contracts, expect margin requirements to be roughly one-tenth of the standard contract, making them accessible with a few thousand dollars in your account. Keep in mind that your broker may set higher margins than the exchange minimum, especially for accounts with less experience or smaller balances.
Placing Your First Trade
Once approved, you’ll select the contract month you want to trade. Crude oil futures are listed for many months into the future, but the front-month contract (the one closest to expiration) has the tightest bid-ask spreads and highest volume. On your broker’s platform, you’ll see the contract listed something like “CLM26” where CL is the product, M represents the month (June), and 26 is the year.
To bet that oil prices will rise, you buy (go long) a contract. To bet prices will fall, you sell (go short). Unlike stocks, shorting a futures contract doesn’t require borrowing anything. You simply sell a contract you don’t own and buy it back later.
Order types work similarly to stocks. A market order fills immediately at the best available price. A limit order lets you specify the price you’re willing to pay. For crude oil futures, limit orders are generally preferable because the contract’s large notional value means even small slippage adds up.
Managing Expiration and Rolling Contracts
This is the part that trips up new futures traders. WTI crude oil futures are physically settled, meaning if you hold a contract through expiration, you are technically obligated to take delivery of 1,000 barrels of oil at a storage facility in Cushing, Oklahoma. No retail trader wants that.
Most brokers will not let you hold a position into the delivery period. They’ll either auto-liquidate your position before expiration or notify you days in advance that you need to close it. But you should never rely on your broker as a safety net. Know the last trading day for your contract month and close your position well before that date.
If you want to maintain exposure beyond the current month, you “roll” your position by closing the expiring contract and simultaneously opening a position in the next month’s contract. For example, if you’re long the June contract and June is approaching expiration, you’d sell the June contract and buy the July contract. Rolling is a normal part of futures trading, but the price difference between months (called the “spread”) means rolling isn’t always cost-neutral.
Costs Beyond Margin
Trading crude oil futures involves several costs. Commission fees vary by broker, typically ranging from $0.50 to $2.50 per contract per side (meaning you pay once to open and once to close). Exchange fees from CME Group are added on top, usually a dollar or two per contract. For Micro contracts, commissions and fees are generally lower but not proportionally one-tenth of the standard contract’s costs.
The less obvious cost is the bid-ask spread, the difference between the price buyers are offering and sellers are asking. For the front-month CL contract, this spread is usually just one tick ($10 on a standard contract), which is tight. Less liquid months or off-peak hours can have wider spreads.
Daily settlement also creates cash flow considerations. Your account is marked to market at the end of every trading day. If oil moves against your position, the loss is deducted from your account balance that evening. If your balance drops below the maintenance margin, you’ll receive a margin call requiring you to deposit additional funds or close the position, sometimes within hours.
How Futures Differ From Other Ways to Trade Oil
Futures give you direct exposure to crude oil prices with standardized contracts and high liquidity. But they’re not the only option, and understanding the difference helps you decide whether futures are the right choice for you.
Oil ETFs like the United States Oil Fund (USO) trade like stocks and don’t require a futures account. However, these funds hold futures contracts themselves and must roll them regularly, which creates tracking errors over time. Holding USO for months or years often produces returns that diverge significantly from the actual change in oil prices.
Oil company stocks (like ExxonMobil or Chevron) give you exposure to the energy sector but not to crude oil prices directly. A company’s stock price depends on its management, refining margins, dividends, and many factors beyond the price of a barrel of oil.
Futures contracts give you the most direct price exposure, but they require active management, margin monitoring, and contract rolling. They’re designed for traders who want precise, leveraged exposure and are comfortable with the mechanics involved.