In this age of globalization and the internet, doing business around the world has become very simple. Now people do business sitting in their seats, but there is still a market field that has very high potential and is still unexplored. This field is different from oil trading. Trading oil is exactly the same as Prename, stock, or anything else. Trading oil, as opposed to buying shares, allows two great advantages. The first is that falling prices can make as much progress as rising prices, by selling more than buying. The second is “carriage” which allows us to buy large quantities with a small deposit effectively. This way we can make a decent profit from a small up or down in price. Of course, this is potentially dangerous, but always in automaton ‘stop-hair-loss”>’stop-stop-loss to close the trade. So that if the price moves against us, then we can control the loss there should be no question.
The amount of capital you require to trade oil varies from broker to broker, but most trade mini contracts and need a few hundred dollars in your account. The risk itself will be even lower due to the fact that at the end of 90 barrels (from $0.90 oil price move). There are two types of prices in the oil market, namely the spot price and the future price. The futures price is simply the estimated price of oil for delivery at a time in the near future. It really doesn’t matter to our business but before you jump into oil trading you should familiarize yourself with the oil market basics.
There are 3 different types of crude oil in the oil industry. The geographies are focused on, namely light (WTI), Brent North Sea, and Oman (gold). Crude West Texas Intermediate (WTI) is the sweetest high quality oil. This is the most common type of crude oil that is traded in the oil futures pit at the New York Mercantile Exchange. Then Brent is a source of crude oil from the North Sea. Brent crude is a light oil and ideal for gasoline production. Dubai and Oman Light crude oil is extracted from Dubai and nearby. The extraction site is important because it affects the cost of transportation to the refinery. Light crude oil is more desirable than heavy oil because it yields higher gasoline, and sweet oil commands a higher price. Trading in these various crude oil futures markets is relatively simple because all the fundamentals that contribute to the economy and their prices are the same.
Finally, remember that trading oil futures involves a high level of risk and is not suitable for all investors. As such, History or Past performance is not indicative of future results. Therefore, before trading in oil, you should get a basic knowledge of oil trading and oil trading.
