The Oil trading market

In recent years the online trading of commodities, such as oil trading and gold trading, have become very profitable. This is mainly due to the global crisis that started in 2008, which increased the volumes of commodities trading because investors saw items such as crude oil as a "physical" investment and preferred trading it rather than other non tangible items.

In July 2008, just before the crisis began, oil reached the price of $150 per barrel. With the market crash, its price began to fall until hitting a low of $30 per barrel. Since the market has stabilized oil has been on the rise and has gained dozens of percents.  In recent years, oil trading is mainly influenced by the instability of the Middle East, which is the most important region for oil production.

As online trading technology progressed so did online commodities and oil trading. Today, almost anybody can trade oil futures directly, through advanced online trading platforms for crude oil, forex and other instruments. However, not many years ago, online oil trading was available just for institutionals that traded crude oil directly in the  Chicago board of trade (CBOT). This kind of trading is very expensive and almost impossible for an individual who wishes to trade oil futures online.

Over the years, Forex brokers developed CFD products that allow people to participate in online crude oil trading at the low cost of forex trading. This initiative resulted in an oil forex trading market. Trading oil with CFDs is actually the most common way to do forex oil trading. This is because it gives the crude oil traders the opportunity to make money from the expiration of crude oil options.

As stated, forex brokers offer simple online oil trading platforms that allow the trader to set oil price alerts in the system. When the crude oil's price reaches a certain level, the system can send a signal for the trader. Then, he or she can send a buy or sell order to his platform and trade the oil directly. This new channel for oil online trading opened a new horizon for the crude oil investment world.

To top