Crude oil is considered the best-selling raw materials worldwide.Contracts for the supply of crude oil are in the biggest markets: in London, the New York and Singapore.Commercial contracts carried out in different parts of the world.Extractive fuel differs significantly depending on the quality of what constitutes a significant run-up in price.The cost of petroleum products is set in accordance with their density, based on the presence in the composition of the paraffinic fuel additives.Strong demand for raw materials automatically triggers the question arises in many people on how to buy oil on the stock exchange.It's not as difficult as it may initially seem like a simple man.
Oil trade: available in every corner of the world
Anyone who thinks about how to buy oil on the stock exchange, will be pleasantly surprised that nothing difficult in the acquisition of raw materials for the modern man does not.Trade asset can be carried out anywhere in the world via the Internet.Earnings on the difference between the resale price of the fuel distribution in the world is real.Petroleum Exchange, previously closed to the common people, is now available through the mediation of the broker.There is an opportunity to invest in the purchase of 1000 or even 10 100 barrels of oil.Profits can withdraw from the price increase of oil products, and from its lows.
buy oil on the stock exchange can be carried out through the purchase of futures contracts.Access to them is every member of the currency market, which is installed on the PC a special terminal.In fact the futures contract is for the supply of fuel in the next month at a rate of 1,000 barrels.Under the terms of the agreement, the buyer assumes the obligation to pay and take the goods, the seller's obligation - is delivery of the goods at the agreed place earlier.Traders buy futures at the same price with a focus on fuel price hike.Before the expiry of the contract, that is, until the period when the actual time comes to deliver the raw material at the agreed place, futures sold on the secondary market.Sami contracts sold on the stock exchange and their value is formed on the basis of the situation on the international market.There are two options: either the trader earns or loses some money by selling the contract cheaper, as the actual delivery of the raw material does not interest him.
publicly traded oil: a clear advantage
One barrel unit volume of feed corresponds to 42 gallons, or 158,988 liters.Oil on the stock exchange was bought in barrels.This measure is widely used for measuring other liquids.As part of the exchange trade in petroleum products is carried out through the purchase or sale of lots.One lot corresponds to the volume of 100 barrels.Compared with the actual trade in raw materials, virtual its format is simpler and more affordable, it provides a minimal amount of cost and complexity.In reality, for oil transactions will need not only a large amount of funds, but also storage, transportation for delivery of raw materials.Search the buyer will be no less challenging.
What do I need to start trading?
Before you buy oil on the stock exchange, you must first open a special trading account that will provide access to Exchange.After registration you can immediately start to purchase or sale of raw materials.With no experience in this matter, you can try your hand at a special demo account, trade in which it is carried out without investing real money.Available formats
There are few commodities trading formats:
- Oil trade on the stock exchange.
- purchase or sale of raw materials under the contract, the conclusion of which is only allowed in the OTC market.
- Trading on long-term contracts concluded between the producer of the fuel and its first customer.
- trade based on futures contracts, which were mentioned above.
for stock market is characterized by its well-established rules.For example, one contract for the fuel trade has a standard size and corresponds to 1,000 barrels.As part of the OTC market buying and selling of raw materials can be in any amount.It is convenient and affordable.To exchange market tend to a specific location, which makes it inaccessible to most.On the OTC market access through a broker is almost always open.
In what currency is a trade?
buy oil on the stock exchange only in dollars, a situation that is quite logical explanation.In fact, the very raw materials have long been perceived as a currency, and each world currency is tied to the US dollar.This explains the changes in the cost of fuel at changing the course of the monetary unit of America.Each company is a world-class bucks are a priority.It should be said about the presence of a minimum commission on the conversion, which is very convenient and profitable for large volumes of transactions.Oil trade has a certain resemblance to trade currency pairs, as its cost impact similar factors: weather, political and economic events of the world ranking.
phased action plan
Sell or buy oil on the stock exchange is a snap.The whole process can be reduced to a number of steps.Initially, you need to choose a reliable broker with an impeccable reputation.The advantage is given to those companies that charge a minimum fee for the transaction and offer small spreads.Trade in raw materials can be carried out on the currency market "Forex", the main thing - to specify in advance a broker this possibility.Trading instrument is often present in the list of basic quotations standard terminal "MetaTrader".It should look in the "futures".Oil may be referred to as UKOIL or USOIL, but there are brokers who use other quotes.Once the desired tool is found, you need to add a new terminal window schedule.This is the basis on which the trade will be carried out.If the technical part of the question about how to buy oil on the stock exchange, could understand almost every true predict the future price movement of forces is not all beginners in this field.Despite the apparent simplicity, it is important to take into consideration that exchange trade - it is not just the most difficult, but also a high-risk form of earning money.
who provides access to the stock exchange and on the basis of what it takes to make predictions?
oil exchanges can be open to everyone thanks to the support of companies-brokers.Among the numerous number of firms service is available to customers and Instaforex RoboForex, Forex4you and Alpari, some others.Determine the direction of oil prices and preparing to enter the market, it is necessary to know that the value of an asset is formed on the basis of supply and demand.Private access to this information makes the traders to pay attention to the following factors:
- Changes in inventories of fuel both industrial and strategic.The increase in the index indicates a low demand in the future, and a sharp reduction in its signals about the likely shortage of fuel in the future.
- Political strife in the "oil regions."In Iran, Iraq, Libya, Afghanistan, there are often fighting, one way or another affect the volume of production of fuel and, consequently, the volume of its supply on the market.
- forecasts in economic development.During the global crisis of 2008, the oil market collapsed and became unattractive for trading.A similar situation can be observed in late 2014.
Comparing the facts, you can not only give a reliable forecast of the further development of events can be found on the basis of his substantial income.Use in trade better and fundamental analysis and technical at the same time.This will reduce the likelihood of errors.