The particularities of oil trading
A volatile asset
Thanks to strong price movements, oil is a highly volatile asset with high liquidity and high trading volumes.
An asset that is very closely followed by the markets
Many institutional investors are interested in oil as a stock market asset and supply and demand in this market is very strong.
An accessible market
It is no longer necessary to buy and store barrels of oil to invest in this raw material.
Long-term investment opportunities
It is possible to invest in the oil market for the long term, for example by buying shares in companies specialising in the black gold industry.
The Day Trading of oil
In addition to long-term investment, stock market oil allows shorter-term positions to be taken with a day trading strategy thanks to its high volatility.
Tools to help analysis
Brokers and financial intermediaries offering investment in oil provide investors with efficient and interesting tools for analysing this asset.
Who should invest in oil?
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.
72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500The different ways of investing in oil
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.
Knowing the oil market well to invest better
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.
To master the analysis of oil prices
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.
CFDs to invest in oil
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.
All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results. This post is for educational purposes and should not be considered as investment advice. The financial transaction services present on this site in the form of advertising are totally independent from trade-oil.com and are provided for information purposes only. Despite all the care taken during the writing of our articles there is still a slight risk of errors made in the information given. Please do not hesitate to report them to us in the case whereby you find a mistake.
Trade-Oil.com is neither a brokerage company nor an investment consulting firm and is not intended to recommend any particular service. Therefore, it cannot be held responsible for any litigation or financial loss following the use of one of these contents.
*The stock market prices are published for information purposes only and free of charge. Under no circumstances can the publisher, Trade-Oil, be held responsible for any errors or delays, and for all their direct and indirect consequences.
