Oil is one of the most in-demand commodities globally. Its price volatility offers investors great potential for profits if they are able to accurately time their trades. However, it also exposes them to large losses if they don’t get the timing right. That’s why, it is recommended that traders only risk a small percentage of their overall portfolio on this market.More info :theinvestorscentre.co.uk

Oil futures are agreements to buy or sell a specific quantity of crude oil on a future date at a set price. They are traded on the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). The North American benchmark is West Texas Intermediate (WTI), while the international benchmark is Brent Crude.

How to Use Options in Conjunction with Oil Futures Trading

Investors can gain exposure to the global oil markets through physical investment, trading futures contracts, or exchange-traded products (ETPs). ETPs track total return indices underpinned by a basket of oil futures.

To trade oil, you’ll need a specialized account with a broker that offers futures trading. You’ll need a minimum of several thousand dollars in starting capital to open an account, depending on the brokerage firm you choose. Once you’re approved, you can begin trading.

There are many strategies for trading oil, including focusing on fundamentals such as economic conditions and geopolitical events. Traders can also leverage technical analysis, which involves studying charts and supporting data to make informed trading decisions. However, this market requires exceptional skill sets to build consistent profits. Those without the necessary experience and resources should consider other ways to play it.…