NY Harbor ULSD (Heating Oil) Futures (HO) Contract Specifications
What you're trading
The NY Harbor ULSD future (HO) — historically known as the heating oil contract — gives you exposure to Ultra-Low Sulfur Diesel delivered in New York Harbor. Despite the legacy "heating oil" name, the underlying product is the same ULSD specification used for on-road diesel fuel, so HO is the primary futures hedge for both Northeast heating oil demand and U.S. diesel/trucking/rail fuel costs. HO is a core leg in the 3-2-1 crack spread (3 CL minus 2 RB minus 1 HO) used by refiners to hedge refining margins.
Contract size
42,000 gallons (1,000 barrels) of No. 2 heating oil / ULSD.
Tick value
Minimum price fluctuation is $0.0001 per gallon, and each tick is worth $4.20 per contract. A $0.01 move equals $420, and a $0.10 move equals $4,200 per contract.
Trading hours
CME Globex: Sunday 5:00 p.m. CT through Friday 4:00 p.m. CT, with the 4:00–5:00 p.m. CT maintenance halt Monday through Thursday.
Settlement type
Physically delivered. Trading terminates on the last business day of the month preceding the delivery month. Open positions at expiration require physical delivery at New York Harbor — roll or close positions before last trading day.
Margin snapshot
HO margin responds to winter heating demand, diesel supply conditions, and refinery outages. Crack-spread positions against CL and RB can qualify for CME margin offsets.
|
Initial margin (overnight) |
~$6,500–$9,000 per contract (approximate; varies with volatility) |
|
Maintenance margin |
~$5,900–$8,200 per contract |
|
Day-trade margin |
Broker-set; often a fraction of overnight margin |
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Notional value (reference) |
~$105,000 at $2.50/gallon |
Margins change with market volatility and vary by broker. The figures above are approximate and for reference only — always confirm current requirements with MetroTrade support or on the CME margin page before trading.