Crude oil is one of the most traded commodities in the world as well as gold. The high liquidity of this market and its volatility depending on certain announcements and publications draw the interest of investors. But before launching into an investment in crude oil it is strongly recommended to know and understand certain information related to this commodity to achieve comprehensive analyses.
Investing in oil on the stock market (like the CFDs offered by Plus500) is aimed at investors with a particular sensitivity to commodities. Like any investment, oil trading requires a certain capacity to analyse data and events likely to influence it over the more or less long term and a good knowledge of technical analysis.
If you wish to deepen your knowledge about oil or to improve your analysis of this asset, the site trade-oil.com has been specially designed to help investors understand the rules of investing in oil and to enable them to make the best use of information about this asset.
Nowadays, it is quite possible for an individual investor to speculate on crude oil prices. In order to make such investments, you will in particular have the possibility of subscribing to a stock market investment offer including this commodity and other such assets. But you can also choose to speculate on the price of oil online through a broker specialising in CFDs. Whether you wish to buy shares in major oil companies or speculate online on the price of oil with CFDs, we will take the time on this site to explain to you the rules to follow, the precautions to take and how the various instruments available to you work.
The oil market is complex. Therefore, before investing in this type of asset, you should learn everything you can about the oil market, how it works and its specificities.
We know in particular that the different actors in this market have a concrete and direct influence on the prices of this raw material and it is of course essential to know them well and to know the global functioning of this market before starting to invest money in it.
Thanks to the various articles that we offer you on this site, you will learn everything about the oil market or deepen your knowledge about it. For example, you will learn how this market is organised with the main producers, consumers and exporters of oil in the world, but also how the price of a barrel of oil is calculated.
We will also tell you how geopolitical news or other external events can affect the rise or fall in the price of a barrel of oil. The factors influencing the price of oil are well known and are the subject of regular events and publications. In particular, we will discuss in detail certain elements such as the US dollar rate, US inventories or OPEC meetings, which are essential factors to be taken into account in your analysis.
On our site you will also find strategic information for carrying out your crude oil price analyses. As we have seen above, investment in oil can be made through a variety of trading methods and instruments. You should therefore first and foremost choose the investment instrument or product that best suits your investor profile and trading horizon. Indeed, the analysis method to be used to anticipate fluctuations in the price of oil will largely depend on the type of investment you wish to put in place.
On our site, we will explain the different current methods of technical or fundamental analysis of oil prices in order to help you anticipate the next price variations of this asset.
Other useful information will also be revealed to you such as the analysis and interpretation of oil market events and news and the use of the most popular technical indicators for this market.
Of course, we will also remind you of a few rules of prudence before trading online, such as money management and risk assessment. Indeed, let us remind you that, as is the case for any financial asset, oil trading is not a 100% safe activity and that you should therefore take the time to train yourself and learn the methodology necessary to analyse this value before investing your capital. In general, we strongly advise against beginners in the stock market to start trading in this activity without a solid training.
Currently, online brokers offer investors CDF contracts to speculate on certain commodities such as oil. These contracts are actually contracts for difference, accessible online from a trading platform and allow investors to speculate on the price of a barrel of WTI or Brent oil from a secure online space.
More concretely, CFDs allow you to take positions, both buying and selling, on stock market crude oil. You can thus anticipate a rise or fall in prices and close your positions when the price per barrel has reached the target you have set. Your gain will be the difference in price between the time you open and close your position, in proportion to the amount you invested and if the price has moved in the direction you expected. If not, your losses are also represented by this difference.
CFDs have many advantages, but it is important to have knowledge of the financial and oil markets before you start trading. Of course, there are also tools available to help you perform your analysis of this stock such as customisable historical stock charts and other specific orders.