Trading crude oil has significantly resulted to one of the most lucrative ventures in financial markets across the globe. Since its inception this trade has significantly become popular in business circles. Various investors around the world have regarded this platform as one of the noble means of getting richer quickly without struggling a lot. This trade is commonly done by speculators and investors alike. There are a number of factors that explains this trend. Crude oil has rear features that make it attractable to many investors. These include easy transportability, abundance, high energy density etc. These characteristics add significant volatility for trading. This in real sense allows for great opportunities to many investors.
Advantages
1. High Investment Returns
Trading crude oil gives you opportunity and ability to make substantial profits. It is a very lucrative investment option that most people still are unaware of as at to date. It is very easy to make thousands of cash in just a few transactions. Furthermore, you can start this trade using a small amount of investment compared to stock market which requires substantial amount of funds. The unpredictability of oil prices allows you reap huge profits in a short span of time.
2. 24 Hour Trading
You enjoy 24 hour trading platform just like the case with Forex trading. You only need reliable internet connection to start trading. You can trade any time and from any place without any problem. The service if offered on a 24-hour basis daily.
3. Leverage
You enjoy a remarkable level of leveraging by trading crude oil. But, there is no common standard of leverage. Various Forex brokerage firms provide different levels of leverage which depends on the size of your account. Leverage is beneficial because you get the opportunity to us little funds to trade high worth values.
4. Trading Concept Is Easy To Comprehend
You don't have to learn the hard jargons to trade crude oil online. The process uses a similar trading concept to Forex trading. You can start trading once you understand how to trade Forex. It saves a lot to get help from your Forex trader or other experienced traders. It is very easy to get started with this type of trading unlike in other financial markets.
5. High Liquidity Internationally
Trading crude oil offers very high liquidity value worldwide. Oil is one of the most liquid investments available currently. This is because of very high quantities of trade that are transacted on regular basis. You can easily change your investments into cash at any given time regardless of locality.
Disadvantages
1. High Volatility
This is a very volatile investment option. It is difficult to predict precisely the extent to which oil prices can be within a few hours. Additionally, changes in the value of crude oil happen more rapid than experienced with equities or currencies.
2. Sensitivity To Several Factors
Crude oil prices are very sensitive to a wide range of factors. Its sensitivity is influenced by many factors. This also account for its high volatility. Elements that can influence the price for crude oil are natural disaster, political instability wars, major news, and currencies among other factors.
3. Threats From Substitutes
Companies, governments, and other world organizations are constantly looking for alternative sources of energy. Currently there are new options like green energy. These alternatives have greater impact on the oil prices.
Conclusion
It is highly profitable to invest in petroleum. Opportunities provided by trading crude oil are enormous and very profitable. Actually this is one of the investment strategies that allow you to make huge cash without sweating. However, just like Forex trading, the risks involved are great. It is pretty wise to understand the market very well before you start trading crude oil. Most importantly, understand the risks which are involved.
Advantages
1. High Investment Returns
Trading crude oil gives you opportunity and ability to make substantial profits. It is a very lucrative investment option that most people still are unaware of as at to date. It is very easy to make thousands of cash in just a few transactions. Furthermore, you can start this trade using a small amount of investment compared to stock market which requires substantial amount of funds. The unpredictability of oil prices allows you reap huge profits in a short span of time.
2. 24 Hour Trading
You enjoy 24 hour trading platform just like the case with Forex trading. You only need reliable internet connection to start trading. You can trade any time and from any place without any problem. The service if offered on a 24-hour basis daily.
3. Leverage
You enjoy a remarkable level of leveraging by trading crude oil. But, there is no common standard of leverage. Various Forex brokerage firms provide different levels of leverage which depends on the size of your account. Leverage is beneficial because you get the opportunity to us little funds to trade high worth values.
4. Trading Concept Is Easy To Comprehend
You don't have to learn the hard jargons to trade crude oil online. The process uses a similar trading concept to Forex trading. You can start trading once you understand how to trade Forex. It saves a lot to get help from your Forex trader or other experienced traders. It is very easy to get started with this type of trading unlike in other financial markets.
5. High Liquidity Internationally
Trading crude oil offers very high liquidity value worldwide. Oil is one of the most liquid investments available currently. This is because of very high quantities of trade that are transacted on regular basis. You can easily change your investments into cash at any given time regardless of locality.
Disadvantages
1. High Volatility
This is a very volatile investment option. It is difficult to predict precisely the extent to which oil prices can be within a few hours. Additionally, changes in the value of crude oil happen more rapid than experienced with equities or currencies.
2. Sensitivity To Several Factors
Crude oil prices are very sensitive to a wide range of factors. Its sensitivity is influenced by many factors. This also account for its high volatility. Elements that can influence the price for crude oil are natural disaster, political instability wars, major news, and currencies among other factors.
3. Threats From Substitutes
Companies, governments, and other world organizations are constantly looking for alternative sources of energy. Currently there are new options like green energy. These alternatives have greater impact on the oil prices.
Conclusion
It is highly profitable to invest in petroleum. Opportunities provided by trading crude oil are enormous and very profitable. Actually this is one of the investment strategies that allow you to make huge cash without sweating. However, just like Forex trading, the risks involved are great. It is pretty wise to understand the market very well before you start trading crude oil. Most importantly, understand the risks which are involved.
About the Author:
Do not trapped in currency trading; almost anything can be a profitable trading, including precious metal, oil, gas, and other commodities. Here is the details of a good broker that could assist you in trading forex, CFDs, Indices, and commodities: a review of HFX. Additionally, be sure you read another great opportunity for steady profits in how to trade gold.
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