Kerosene Futures Trading Basics

Kerosene futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of kerosene (eg. 50 kiloliters) at a predetermined price on a future delivery date.

Kerosene Futures Exchanges

You can trade Kerosene futures at Tokyo Commodity Exchange (TOCOM).

TOCOM Kerosene futures prices are quoted in yen per kiloliter and are traded in lot sizes of 50 kiloliters (13210 gallons).

Exchange & Product NameSymbolContract SizeInitial Margin
TOCOM Kerosene Futures
(Price Quotes)
-50 kiloliters
(Full Contract Spec)
JPY 210,000 (approx. 9%)
(Latest Margin Info)

Kerosene Futures Trading Basics

Consumers and producers of kerosene can manage kerosene price risk by purchasing and selling kerosene futures. Kerosene producers can employ a short hedge to lock in a selling price for the kerosene they produce while businesses that require kerosene can utilize a long hedge to secure a purchase price for the commodity they need.

Kerosene futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable kerosene price movement. Speculators buy kerosene futures when they believe that kerosene prices will go up. Conversely, they will sell kerosene futures when they think that kerosene prices will fall.

Learn More About Kerosene Futures & Options Trading

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