How to Trade Crude Oil
One of the most traded commodities in the world is oil, and each day some of the largest trading institutions buy and sell billions of dollars worth of it. For aspiring traders seeking their fortune, it can be intimidating to trade against these institutions because many would-be traders don’t understand the market for crude oil.
Trading crude oil involves owning it. While you could purchase an oil well, it isn’t practical for the sake of trading. Fortunately, oil is a commodity. That is, a real asset that can be traded through exchange houses through futures contracts, exchange traded notes, royalty trusts, and oil and gas exploration companies.
The most direct way to trade crude oil is through futures and Exchange Traded Funds (ETF’s). Crude oil is traded in barrels against the US dollar, and access to our platform enables traders to buy and sell hundreds of barrels of oil in a through our trading terminal.