Trading black gold - oil trading

The black gold trading in the forex market of the most prominent types of trades this market knows, by virtue of that oil is classified among the most raw material liquidity and influence in the world economy and even on currency trading because the price of oil was and is still the most prominent key indicators that expression on the state of the situation of the world economy for many years.

This is due to that this material is the basis and the main nerve of the industry, which allows countries that are available on the oil resources benefit from high oil prices and affected Bankhvadh, while countries that depend to cover its needs on the Astorad oil they suffer from any rise recorded by oil prices , have been observed in recent years are very highly motivated by the traders of the oil-trading in the forex market, where Ranked part of successful trading, and it is due to the oil and energy the biggest business in the world considered, making the demand for trading continues to increase because it is one of the between tangible commodities trading in the Forex market, and we will look at Mqltna these advantages and positive points in this type of trading.

Pros black gold trading in the forex market

Ease of trading:

In fact, we find a very large similarity between the trade in crude oil and call it black gold name and between foreign exchange trading, because there are no special terms or special technical trading oil words that distinguish it from other types of trading, but that the terminology used in currency trading are the same that are used in oil trading, and the same thing for the techniques and strategies, which shows that trading in the black gold is something simple and uncomplicated as it is in the imagination of some people.

High liquidity:

Oil is classified among the most suitable assets which are available for trading, as it is one of the most important available for all investments in the world but also attractive to investors, and most, by virtue of high liquidity which is characterized by, because in one day is a huge volume of oil traded on a regular basis.

Investment is high profit:

In fact, we find that the price of oil can fluctuate in a very small period of time, which can be given the opportunity and the possibility to achieve high profit in a short period of time.

Leverage in the forex market:

Characterized by the oil trade in the forex markets, leveraged offered best brokerage firms that they range from 1:50 or 1: 100, which offers the client the possibility of the opening of trading transactions hit 50 times or 100 times the real value of oil, which makes it easier for Rolling profit in every movement of the oil price naturally also the opposite is true because of the risk.

Oil is trading in the forex market

Oil is one of the most raw material liquidity and influence in the world economy and especially on currency trading as the price of oil has been and remains the most key indicators that will express the state of the situation of the world economy for many years, because this article is the basis and backbone of the industry, by virtue of the countries that are available on the oil resources benefit from high oil prices, it is also affected by Bankhvadh, while the countries that rely on to cover their needs Astorad oil, it certainly will suffer inevitably will know of any rise in oil prices.

Since the recent years Arfa Iqbal traders on oil trading in the forex market for something that made him classified as a successful trading, by virtue of Petroleum and Energy considered the biggest business in the world, which affected the turnout, where became a trading continues to increase by virtue Ranked among the tangible trading goods box in exchange market, which prompted us to address this in our article to the subject of oil trading in the forex market in order to speak on two important points, namely how to oil trading in the forex market and the factors that affect it.

How oil trading in the forex market

The oil trade, like other types of currency trading in regards to how to buy and sell, because prices are shown per barrel against the US dollar, which gives the possibility of trading directly through currency trading platform which symbolizes oil symbol (OIL), where it is like all other types of prices, oil prices fluctuate according to supply and demand base and that are largely coupled with the US dollar's movement mother who would facilitate the trading process in this genre, by virtue of opening ability, modify and even close deals on the same lines being followed when trading currencies, but it can be found some constraints, which is the period of the end of the oil contract, where oil is traded through the decades have a certain length to finish, as well as a specific period in order to start a new process of trading, in addition to the need to choose the right broker to process trading

Which would help you in your trading by providing a trading environment that fit rolling environment that will help you achieve success.

Factors that affect the trading price of the black gold

Frankly speaking, we find that there are many factors that influence the oil trading price, and perhaps the most prominent and most supply base effect and demand, as well as news of global economic indicators, which can not be overlooked for the role, but there are large fluctuations in the price of oil as characterized these prices Balhassash than It makes them highly volatile and even before you start trading oil.

Trading Crude Oil

Brent Crude Oil is the trading classification for sweet light crude oil, which made up of a variety of crude blends drawn from the North Sea. It is the leading global price standard in Oil, and is used to price roughly ⅔ of global crude oil market. Named by the Shell UK Oil Company after the local Brent Goose, it is an acronym for the formative layers of an oil field: Broom, Rannoch, Etieve, Ness and Tarbat. Most Oil production thats comes from Europe, Africa and the Middle East and flows Westwards is priced in relation to Brent Crude. It should be noted that major blocs of Europe now import Oil supplies from Russia.

Since 2005 Crude Oil has been traded on the electronic IntercontinentalExchange, known as ICE. One contract is equal to 100 barrels and is quoted in U.S. Dollars. In the world of Forex, Crude oil is traded as a CFD using the same quantities relative to "barrels" with USD as a base currency( 1 Lot = 100 Barrels). Because of global demand, Crude Oil is seen as an extremely sensitive and volatile commodity that can jump dramatically in response to heightened political and economic circumstances. A clear example, would be the recent civil war in Libya which caused Oil prices to jump sharply from $85 to roughly $115 a barrel over a very short period of time. NSFX realizes how important having optimal Crude Oil trading conditions can be to the individual trader, and offers Crude Oil trading in G.B.P. as well as traditional U.S. Dollar pricing (shown as UKOIL and US OIL respectively).

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Trading Crude Oil with NSFX

NSFX recognizes how important trading Oil is to any investor who takes the market seriously. As a result NSFX understands how important it is to provide the trader with the best possible market conditions.

1.     Fast Execution & Tightest Spreads Available.

2.     Trading Crude Oil via Multiple Platforms (Web, Desktop, Mobile).

3.     Balanced Leverage and Exposure , 1:100 , 1% of transaction value.

4.     Flexibility of trading a fixed spread on Crude Oil or variable ECN spread

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Crude Oil Trading Conditions

Now let’s see how some Crude Oil positions look in the actual market. The most straightforward way is by going through the calculations involved.

Let’s take a 100 Barrel “UKOIL” (1 Lot) position bought at a market price of $106.00 per/barrel. The USD value of the position will be: 100 Barrels X $106.00= $10,600. With a margin requirement of 1% (1:100 leverage) the result will be $106.00 required to open the position.

Now, let’s take a 1000 Barrel “USOIL” (10 Standard Lot) position bought at a market price of $85.00 per/barrel. The USD value of the position will be: 1000 Barrels X $85.00= $85,000. With a margin requirement of 1% (1:100 leverage) the result will be $850 required to open the position.

It should be noted a client may choose to speculate in Crude Oil in both GBP or USD, but margin requirements will be calculated by the currency base (USD, EURO,GBP) chosen for the account by the client.

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Additional information regarding Crude Oil

At NSFX rollovers are dealt with on a "spot" basis only. Meaning that all positions are settled two business days from inception, as per market rules. NSFX will not facilitate actual physical delivery of either precious metals/currency.

* The above illustrations are mere fictitious examples and are not to be construed in any way to constitute investment advice.

** The performance figures quoted are only estimates and may not be reliable indicator of future performance of this investment.

*** This information does not constitute an offer or solicitation and is provided for information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of NSFX at the time of preparation. They are thus subject to change without notice. NSFX believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by NSFX and no liability in respect of any errors or omissions, including any third party liability, are accepted by NSFX or any director, officer or employee.