Oil trading on Forex
Oil trading chart
27 Oct 2020 15:04
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
What factors determine oil prices?
Oil price depends on a lot of geopolitical factors and reflects market participants’ sentiment. Countries, big companies, and traders can all be considered the players in the oil market.
For example: airline companies trade oil to hedge their risks for fuel price growth, whereas traders perform deals in order to make money from market fluctuations.
Oil prices are conditioned by the same factors as the exchange rates of currencies, i.e. political developments, financial events, and even weather.
On the forex market, oil CFDs are traded the same way as currency pairs, yet with a different leverage and margin level. One contract for delivery of a particular oil type corresponds to the price of 100 barrels of oil in the US dollars. On Forex such contracts are called contracts for difference and are classified as OTC financial instruments. They have an expiry date and all losses and gains are paid in cash.
On Forex, market participants can trade the following types of crude oil:
- heavy crude oil;
- light crude oil.
Moreover, sulfur level and oil density are also taken into account.
Apart from CFDs, market participants also trade oil futures. Our company offers two types of contracts:
- Brent Crude (light low-sulfur crude oil extracted from the North Sea);
- WTI (lighter low-sulfur crude oil extracted in West Texas).
For your information, the #XBZ symbol stands for Brent futures contract. The #CL symbol stands for WTI futures contract. Moreover, it is possible to trade mini contracts of a standard futures under the ticker symbol of #CL — miNY Crude Oil (#QM).
Follow the latest World Economy news and always keep yourself up-to-date with the oil market developments.
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.