Heating Oil Futures: ULSD
Heating oil futures describes HO contract mechanics, not a forecast or a recommendation.
Educational only, not a recommendation to buy or sell any contract or a solicitation to open an account. Futures and options trading involves substantial risk of loss. You can lose more than your initial deposit.
Contract specifications
| Specification | HO |
|---|---|
| Exchange | NYMEX |
| Symbol | HO |
| Contract size | 42,000 U.S. gallons |
| Tick size / value | $0.0001/gallon = $4.20 |
| Trading hours | Confirm current hours on the official exchange contract specifications page; holiday schedules may differ. |
| Listed months | Confirm current listed months on the official exchange contract specifications page. |
| Settlement | Physical New York Harbor ULSD, Colonial Grade 62. Rule text excludes renewable diesel and biodiesel. |
Last verified November 10, 2026.
This is the supplied source-note date, not confirmation of every live field. Dated sources and fields requiring exchange confirmation are identified below.
The official Rulebook Chapter 150 title is NY Harbor ULSD Futures. The market is still commonly called heating oil, but the deliverable product is ultra-low sulfur diesel.
Micro, mini, and related smaller contracts
No smaller listing is verified here; check the exchange.
Worked tick and 1% example
Hypothetical arithmetic illustration only — not a current price, projection, trading result, or recommendation.
One outright tick changes one HO contract by $4.2. Four ticks change it by 4 × $4.2 = $16.8, in either direction, before costs.
Assume a made-up quotation of 2.5 U.S. dollars per gallon. A 1% price change is 0.025 in those quote units. Multiplying by 42,000 gives $1,050 for one contract. The same move against a position produces a loss of that amount before costs.
Commissions, fees, bid-ask spreads, and slippage are excluded. Leverage can lead to losses larger than your deposit; a 1% price move is not a 1% account-equity move.
Margin and leverage
Margin is a performance bond, not the purchase price or a limit on loss. Exchange requirements and carrying-firm requirements can change; the firm may require more and may liquidate positions when requirements are not met. No margin dollar amounts are quoted here.
Official exchange product and margin information · Margin and Leverage in Futures
What moves the market
Distillate inventories, freight and industrial demand, winter weather, refineries, and crude prices matter.
Reading the Economic Calendar explains scheduled-release timing. Unscheduled news can also move prices; stops do not guarantee an exit price.
Rollover and expiration
No trading in the expiring month after the last business day of the month preceding delivery. Confirm current exchange rules.
A roll closes one contract month and opens another; spreads, costs, and execution risk remain. Firm deadlines may be earlier than exchange deadlines. See Contract Rollover, First Notice Day, and Last Trading Day.
Frequently asked questions
What is the contract size and tick value?
HO: 42,000 U.S. gallons; $0.0001/gallon = $4.20.
Is there a smaller related contract?
No smaller listing is verified here; check the exchange.
How does settlement and expiration work?
Physical New York Harbor ULSD, Colonial Grade 62. Rule text excludes renewable diesel and biodiesel. No trading in the expiring month after the last business day of the month preceding delivery. Confirm current exchange rules.
Does a smaller contract or a stop remove risk?
No. Futures remain leveraged; you can lose more than your initial deposit. Smaller contracts change dollar exposure, not market direction. Stops do not guarantee a fill at the stop price.
Talk it through, if that would help
Ask about contract mechanics or practicing with simulated funds. There is no obligation to open an account.
Demo accounts use simulated funds. Demo results do not reflect real trading and are not indicative of future results. Features, terms, and availability can change.
Drew Rathgeber, President
949-996-4611 · drathgeber@profuturestrader.com