Short Oil Fund Trading

The U.S. Short Oil Fund LP is an exchange traded security designed to inversely track in percentage terms the movements of crude oil prices.
DNO issued units may be purchased and sold on the New York Arca Stock Exchange.
The investment objective is to have the changes in percentage terms of its units’ net asset value inversely reflect the changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, as measured by the changes in the price of the futures contract on light, sweet crude oil as traded on the New York Mercantile Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case the futures contract will be the next month contract to expire — what is called the “Benchmark Futures Contract” — less DNO’s expenses.
Crude oil is one of the most important physical commodities in the global economy. Crude oil futures are one of the most actively traded futures contracts and represent the primary U.S. benchmark for crude oil prices.
The portfolio consists of short positions in listed crude oil futures contracts and other crude oil related futures, forwards and swap contracts. These investments will be collateralized by cash, cash equivalents and U.S. government obligations with remaining maturities of two years or less.



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