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What exactly is involved in trading oil futures?

Updated: 9/10/2019
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14y ago

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Oil Futures are contracts that are legally binding. Buyer and seller have the obligation to take and make the delivery. Trading oil futures refers to the price oil is being traded at on the stock market.

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Q: What exactly is involved in trading oil futures?
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What are some dangers in trading oil futures?

There are many risks and dangers associated with trading oil futures. The oil market is volatile and may pick itself back up quickly, which leaves futures high but oil prices low. Oil futures are also difficult to predict in price.


What has the author Sally Clubley written?

Sally Clubley has written: 'Trading in Oil Futures and Options' 'Trading in oil futures' -- subject(s): Commodity exchanges, Futures market, Petroleum industry and trade, Speculation


Which companies specialize in commodities futures trading?

Commodoties futures trading involves buying and selling contract for the future delivery of raw materials e.g oil, gas, grain. Its regulates in the US by the Commodity Future Trading Commission and the main companies operatin in this arena are Orion Futures, Cannon Trading and United Futures.


How does one get a start in the business of crude oil trading?

To start trading in crude oil futures, the fist thing one should do is read up on the futures market and understand how it operates. A familiarity with the oil industry and the environmental and economic factors that affect its profitability is also helpful. Or, one can select a broker who is an expert in the commodities futures market and has experience in crude oil trading.


Is there a futures quote for Tall Oil If so, where?

Tall Oil either does not exist or is not trading publicly on any exchange.


Are trading oil futures really expensive?

Oil futures, or any other kind of futures trading, is taking a risk. The trader buys the futures at one rate and hopes to unload them later at a better price, which is a prediction based on markets, experience and talent. "Expensive" is a relative term. For someone who is paid a minimum wage, trading futures is likely not in the cards. Liquid assets are necessary. For a broker willing to take the risk and win big, "expensive" is not a consideration; rather, it is about possible return on investment.


What exactly is brent crude oil futures?

Brent crude oil futures are stocks whose price flactuates every now and then. This is affected by various factors in the market but mostly that of demand and supply.


How can you invest in oil etf?

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What is the future for crude oil trading likely to be?

The price of crude oil trading futures is dependent on many factors, such as OPEC trading quotas, any changes to refinery capacity, financial markets and even weather conditions in oil producing areas. While oil futures have been on a slight downward trend, there is no guarantee they will remain that way as an active hurricane season forecast for the US and Gulf of Mexico coincides with uncertainty in the Middle East.


What has the author Hossein Razavi written?

Hossein Razavi has written: 'The new era of petroleum trading' -- subject(s): Petroleum industry and trade 'Oil Futures Trading'


What are some of the best online trading futures?

Some of the best online trading futures are in commodities such as oil and gold. Investors have the opportunity to benefit from the regular price swings in commodities while maintaining low transactions costs, high leverage, access to price movements as well as the ability to offset their obligations before the futures are delivered.


What companies are heavily involved with oil trading?

There are many companies that are heavily with oil trading. These include Royal Dutch Shell, British Petroleum, Exxon Mobile, Total Oil Trading SA among others.