How to make money on oil - find out the peculiarities of the oil trade!

Oil trading

Plan:

- Oil trading
- About the price of oil
- What else depends and what the asset
is tied to - Some features of black gold on the stock exchange
- How to make money on oil?
- 3 Ways to
Earn on Reduced Cost - Earn on Black Gold with uTrader
- Conclusion

Oil has been the most demanded fuel resource for many decades. Despite this, the bulk of oil trading operations are carried out with the aim of deriving benefits from fluctuations in quotations of "black gold". Receiving speculative income from oil transactions, in the form familiar to traders, became possible after the appearance of oil futures contracts (oil futures), they are used both as a tool for investment and as an object of speculation.

For professional traders, oil trading is quite a profitable activity, as oil futures are in high demand. At almost any time, you can either gain or drop a relatively large trading position. This is possible due to the fact that the trading volumes of an active trader who constantly sells and buys oil futures are too small compared to the volumes of large producers and institutional players.

Do not forget that among the largest participants in exchange trading are oil-producing states and consumer countries, so if you correctly assess the current market, political and global financial situation, as well as the current news background that has a direct impact on oil quotes, you can make very good money. More details can be found at Oil Profit

About the price of oil

What is the cost of oil from? Oil is produced in different fields, therefore, it will differ in quality and its properties.

Based on this, it would be logical to assume that different grades of oil will differ in cost. I want to say right away that the oil that appears on the market is oil from several fields.

There are, oddly enough, more than two hundred varieties of oil.

These are a kind of reference varieties, which are the very best examples. In Europe and Asia, Brent (Brent crude oil) is considered the benchmark, in North and South America, WTI is considered the benchmark. In general, there are a lot of varieties, and in different regions they are reference. In general, there are about 200 types of oil.

But in view of this huge variety of oil grades, only the most liquid grades participate in the auction. It is believed that the price of black gold within the exchange is the most objective.

It is not without reason that many traders note that oil is a really well predictable instrument in technical terms, but according to many investors, there is one nuance that makes oil not entirely predictable at some moments - this is the asset's belonging to the fundamental.

That is, fundamental factors have a very strong effect on oil, in addition, the cost of oil is sometimes manageable. Have you all heard about the OPEC organization? So the decisions of this consortium directly and give sharp changes in the cost of oil.

What else does the asset depend on and what is it attached to?

In two years, the cost of oil has fallen by more than 2 times. But, in any case, oil is a very attractive asset for speculative trading activities.

Pegging oil to the dollar is practically a tradition.

The first reason is that oil itself has quietly become a legitimate currency. This fact determines the moment that changes in oil prices are reflected in the dollar itself.

In addition, large companies trading in oil prefer to choose dollars in order to minimize the costs of possible currency conversion. It is much easier to convert the national currency into dollars.

Some features of black gold on the exchange

As a rule, a currency quote is actively moving at a certain time of the day. For example, the euro-dollar pair is dynamic from 9:00 to 18:00 Moscow time. As for oil, its course moves constantly, because the raw materials are used all over the world. You can trade this asset both day and night, the results will not change.

Oil prices change frequently during important news releases. If you want to do fundamental analysis, you can browse the news on the Internet. Particular attention should be paid to the activities of OPEC (Organization of Petroleum Exporting Countries), the volume of "black gold" production, oil imports to developed countries, etc. For example, with a decrease in production volumes, the supply of oil on the market falls, and the price will rise.

Pay attention to the military-political situation in the Middle East. Wars and terrorist attacks also strongly affect the "black gold" course. If a war breaks out in a country, it is likely to start producing increased volumes of oil in order to earn more money for warfare. At the same time, the supply of fuel on the market increases, and the price goes down. A similar situation is observed today with Iraq.

Thus, the cost of oil is also a great way of earning money for the common man. Of course, to achieve the result, you will need to spend time studying the material, but, you see, it is worth it. Personally, I once killed 3 months for preparation, but you have the opportunity to study everything on one site in a few days. Don't miss it! Start preparing now!

How to make money on oil?

In order to make money trading oil, traders usually use 2 types of analysis:

1) Analysis of the information background.
Analysis of the information background implies the collection, processing and use of information that can lead to a change in the price of oil. All news and report data can be divided into 3 main groups:

a) Natural.
The group of "natural" includes data on the volume of oil in explored fields located in various regions, as well as information on the discovery of new fields.

b) Geopolitical.
The group of geopolitical data includes any news that relates to agreements between states in the oil sector.

c) Stock quantity data.
The data on the amount of reserves includes any information on the volumes of oil produced, which is in the storage facilities of a particular state.
All of the above data can have a strong impact on the price of oil, and one "loud" news is capable of strengthening or reversing the existing trend in almost any timeframe in a matter of seconds.

2) Technical analysis.
When using technical analysis, professional traders use two main trading methods: price action trading and the VSA method. Trading with Price Action is based on chart analysis and searching for specific trading patterns. When using the VSA method, a trader predicts the future direction of price movement based on trading volumes linked to specific price levels.

3 ways to capitalize on a drop in value

1) Investments in shares of large companies.
This is the most traditional option, which is now actively used by large investors. What does oil have to do with it? The fact is that some companies benefit from the downward dynamics of "black gold", since they buy oil for their needs. Accordingly, the lower the rate, the less costs and more profit.

Who can be attributed here? First, these are companies that sell energy, but buy oil from other organizations. Secondly, these are transportation companies, whose main costs are gasoline. Also, this can include a number of other organizations: industrial plants that do not operate on their own energy, manufacturers of synthetic materials based on oil, etc. As for oil producers, no one is recommended to invest in their shares today, because the lower the oil price, the lower their profit.

2) Futures trading.
Another option for large capital holders with access to the stock market. The essence of futures contacts is that you agree to buy or sell a certain commodity in the future at a predetermined price (usually at the market price at the time of signing the contract). Futures are used for both business and speculative purposes.

3) Binary options exchange.
This is an option for the common man.
The principle of work here is that you need to predict the direction of the course for a certain period. If the forecast turned out to be correct, and you bought the desired option (Higher or Lower), you will make a profit. Accordingly, if it turns out to be incorrect, suffer a loss.

The main attraction of the options exchange is that profit and loss are fixed. If you are familiar with the Forex exchange, you should understand that if the chart moves strongly against your forecast, you can lose a decent amount if you do not completely drain your deposit. It is basically impossible to do this on options, because you cannot lose more than originally planned. It should also be noted that the trader gets profit regardless of how much the chart has moved. To make a profit, just a 1 pip move is enough, which the chart can do in a few seconds. Thus, a short time period is enough to earn money (options are available for a period of 15 seconds or more).

Make money on black gold with uTrader

Advantages:
Firstly,  uTrader has a high percentage of remuneration for this asset. For example, 24option's income from electronic contracts for oil or gold is only 73%.

As for the trade itself, to conclude a successful deal, it is enough to follow the news concerning the oil market. These can be OPEC statements, production data, or simply tracking the price of black gold.
You can make money on the fall in oil, not tricky at all, if we see that prices are constantly falling, then you need to buy binary options "below" (put). If we see that the market is leveling off, there is a deficit on it, or there is simply information about the growing world oil consumption, then we need binary options "higher" (call). In the terminal, this difference is expressed in just two buttons:

Opening an account for trading binary options on various stocks, resources, currencies, etc. is very simple. It is enough to go to the official website https://ru.utrader.com/ and go through a quick registration (a couple of minutes). We replenish the deposit for the amount that we plan to use to purchase binary options (for comfortable work, preferably from $ 250-300 or the equivalent in other banknotes).

All trading takes place in your personal account on the company's website, so there is no need to install any programs. This is very convenient considering that most people work during the day. You can go to the company's website, enter your personal account, look at the chart online and purchase a binary option on the asset of interest.

You should not immediately buy an option for all funds on the deposit. It is advisable to purchase electronic contracts worth up to 10% of your capital. You can make money not only on oil, but also on other assets, of which there are a large number.

You can replenish your account and withdraw profits in various ways, for example, using plastic cards (VISA, MasterCard), electronic payment systems (QIWI, Webmoney) and so on. You will receive profit in dollars, which is also very important at the present time.

Binary options are perhaps the most convenient way to make money on oil and other assets today. It is very convenient that you can make a profit, even from BMW shares, even from the euro exchange rate, if you see a suitable situation, and all this is within the framework of one trading platform.

Conclusion

For traders and investors, oil is a very attractive asset. In addition, in most countries, the country's economy is tied to the cost of oil. Therefore, for a trader, the cost for it does not really matter. For him, it is more important that oil gives good movements, on which one can earn decent money.

Even ordinary people far from the oil business are able to profit from oil if they know the factors that affect its price. Binary options trading will help them in this. Those with large capital can invest in futures contracts or work with shares of oil companies. Choose the method that's right for you.