What does the oil price depend on?
You can trade crude oil with InstaForex in the form of CFDs on futures. This means that a lot will not have a fixed volume in barrels, gallons, or liters of the crude. Instead, there will be a fixed margin available in the specification. Beside the price for futures, the specification has three parameters that are important for every trader: the margin, the value and the tick size. Let us have a look at an example.
Let us say you decided to buy #CL (a CFD on crude oil). You can see that the margin is 2,000, i.e. you will commit 2,000 for each open lot. In other words, if your balance is USD 3,000, after a lot is opened, you will only have USD 1,000 of free margin.
Now, let us imagine you bought at USD 61.60 and closed the trade at 61.80. You can see in the specification that the tick size (that is, the minimum price change) is 0.01. This means that the price change from 61.60 to 61.80 constitutes 20 ticks. The tick price is USD 10. In other words, you earned 20*10-30= USD 170.
You may wonder why 170, not 200. And what is this difference of USD 30? Please note that the buy and sell price is the same. Here, the broker earns not from the spread but from the fee that is also shown in the specification. And the fee amounts to USD 30.
Essentially, this is all the information you need to start trading. This and, of course, the oil price chart and the list of indices available, please see below.
Oil trading chart
30 Jul 2021 23:59
Closing price, the previous day.
The highest price over the last trading day.
The lowest price over the last trading day
Price range high in the last 52 weeks
Price range low in the last 52 weeks
Videos from Instaforex
InstaWiki - Labor Market
The basics of fundamental analysis are a must for every trader. This type of analysis enables a trader to forecast further dynamics of currency pairs, thus contributing to successful trading. Fundamental analysts view a labor market as a good barometer to judge whether a currency of that country is attractive enough for investments.
InstaWiki - Crude oil
First and foremost, you should clearly understand what you are going to work with when picking a trading instrument. In this InstaWiki release, we will present a detailed analysis of oil as one of the trading instruments.
InstaWiki - Cryptocurrency
A few years ago, we got to know a new type of money, the cryptocurrency called bitcoin. Today, it is widely used for online shopping and even accepted for payments in some restaurants. What is more, bitcoin can bring you profit. Learn more about this from InstaWiki video.
InstaWiki - Inflation, Consumer Price Index, and Purchasing Power Parity
How do these concepts influence currency exchange rates? Why do central banks give inflation data high priority? You will find out about it from the next series of the video encyclopedia by InstaForex.
InstaWiki – Safe-haven currencies
A successful investor never panics. In times of geopolitical instability, natural disasters, and uncertainty about the future, traders seek shelter in safe-haven currencies.
InstaWiki – Carry trade. Swap
Carry trade and swap are ones of the most popular Forex terms. You will find a step-by-step guide on loss-free carry trading in this release of video encyclopedia from InstaForex.
InstaWiki – Fundamental analysis
What is the basis of fundamental analysis and should a trader pay attention to macroeconomic statistics? Make sure you are up-to-date with InstaWiki releases, the new format of information videos from InstaForex.
InstaWiki - Stock quote, chart. Technical analysis
What are Japanese candlesticks and how are the prices of currency pairs formed? Explanation for key Forex terms is provided in another video of InstaForex TV encyclopedia.