Trading Oil - Thursday, May 28, 2009 13:06 - 0 Comments

Oil Trading Basics

Getting familiar with oil trading basics is a good away to begin your venture in the oil market. Trading oil is similar to trading Forex and often Forex brokers offer a platform for oil trading. The difference between trading oil and investing in the stock market is that one can profit from both rising and falling prices of oil.

Oil Trading Basics: Leverage
One of the advantages of oil trading is that one can benefit from “leverage.” This means that for a given investment, a trader can gain significantly higher exposure. Certain Forex platforms allow investors leverage of as high as one hundred to one purchasing power.

This means that for every one hundred dollars you deposit, the broker lets you trade $10,000 worth of oil.

This increases the investor’s profit potential with price movements. Of course, this enhanced potential comes at a risk. Continue…