Oil is the world’s most traded commodity. Crude Oil is a naturally occurring liquid fossil fuel resulting from plants and animals buried underground and exposed to extreme heat and pressure. Crude oil is one of the most demanded commodities and prices have significantly increased in recent times. Two major benchmarks for pricing crude oil are the United States’ WTI (West Texas Intermediate) and United Kingdom’s Brent. The differences between WTI and Brent include not only price but oil type as well, with WTI producing crude oil with a different density and sulfur content. The demand for crude oil is dependent on global economic conditions as well as market speculation. Crude oil prices are commonly measured in USD.
Oil contract trading doesn’t differ much from regular currency trading. Crude Oil futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of crude oil (eg. 1000 barrels) at a predetermined price on a future delivery date.
Oil investment is a profitable and reliable way of increasing your capital and saving it during the periods of market instability.
Why Trade Oil with Prime Fx Bank?
- Trade using Charts – Visualize market activity, open new positions and place entry orders. The charts are easy to understand and fast to move.
- Tight Spreads – We work with leading global banking institutions to bring you the best prices out there take advantage of super-tight spreads and without any commissions or fees.
- Common Trading Platform – We offer you the same MT4 and Sirix platform that you are familiar with for trading Forex, to trade oil. This saves a lot of your time otherwise needed to understand a new platform.
- Generous Leverage – Use leverage to trade Oil (up to 100:1)