Hi,
I am been doing some study about oil for the past few weeks but it seems oil is not really what i thought it was. Hence i will like to learn from some member of this forum who knows much about oil trading.
Does anyone have an idea how to trade oil?
Thank you.
John.
Hi John
What do you like to know about Oil trading?
I trade oil futures!
I know Oanda and some other brokers offer gold and silver directly on the forex market but don’t know of any that have oil. Canada is an oil country so maybe CAD is worth a look.
Oil companys on the stockmarket might be better though. I made some nice $ that way before I started with forex:D
You can trade oil CFDs with FXCM, and oil futures with any futures broker.
Yeah. Thanks for your response.I am interested in the oil futures.The nitty-gritty and other stuffs.What it entails and how can one makes profit there.
Also will my knowledge in forex help me in oil futures? What indicators are you using?
I look forward to hearing from you.
Greetings,
John.
John, I am occupied the rest of the day.
I will answer during the weekend!
Regards
Marcell
Marcell,
Thank you. I am available when you are ready.
Hi again!
As I told you on Friday, you can trade oil either as CFD (FXCM London offers a CFD platform) margin is $1000 pr. 5 contracts which is minimum with FXCM. As the CFD is leaning on the futures products, you might as well trade the futures contracts.
You can trade oil futures on NYMEX through any futures broker, NYMEX offers to trade oil either as full size 1000 barrels or MINI size 500 barrels Crude oil. But you can also trade Brent oil.
You can find specifications at the CME group web site. (cmegroup.com - CME Group - Home).
US Oil is traded against USD and it is not much different than trading a currency cross.
CAD and oil do have some sort of relation which means that you have to watch both the CAD and the oil if you want to trade oil.
As with other commodities you sure have to apply some sort of fundamental analysis and I do not use any indicators to trade the oil.
I use fundamentals and Elliott Wave/Fibonacci for entry, stop and target.
Oil is very sensibly to what is happening around in the world, first of all what happens in the Middle East, also weather and changes in consumer patterns will affect the price.
It is a bit difficult to be more precise, but I will answer any specific question you might have.
Regards
Marcell
FXCM’s minimum CFD contract size for oil was lowered to 1 (margin $200) a month back.
-Jason
This is one of the reasons why I like trading in Oil so much because it’s very easy to see when it’s a good time to buy and sell from the info you get on the news etc and like you say based on the weather.
Also, the fact that we’re running out. Everyone go long on oil.
It deoends on your style day trading or swing.
It is a very volatile instrument so you must adjust your stops accordingly.
Hi Marcell,
May I know the difference between Fx and Oil trading regarding money management? I mean, tick/pip value and every other difference you can spot?
As for volatility, stop losses and profit targets, that I should figure out by demoing and looking at the charts.
Thank you.