Surprising as it might be, anyone can invest in the oil market to make a profit. Indeed, the development of online trading platforms has allowed individuals to use their savings to speculate on rising or falling oil prices. To this end, simply choose your method of trading between the CFDs offered by Forex brokers, which are specifically designed for beginners. Invest-oil.co.uk makes a point to explain how these two trading tools work and how best to use them for profit.

At the present time CFDs are undoubtedly the most appropriate tools for investing your money in the oil price. They are in fact ‘Contracts for the Difference’ that are available online through broker trading platforms and enable individuals to speculate on the price per barrel of WTI or Brent crude oil from a secure area online. More precisely, CFDs enable you to take position in just a few clicks, on buying and selling positions on the crude oil stock markets. You can thereby speculate on the rise or fall of the oil price and close your positions when the price per barrel has attained the price objective that you fixed. Your profit will correspond here to the price difference between the opening time and closing times of your position in proportion to the amount invested and if the price has moved in the direction you forecast. In the case to the contrary your loss will also represent this price difference. CFDs offer numerous advantages including the fact that they are very easy to use, even for individuals that are not used to investing alone on the financial markets. Another thing, they offer a leverage effect that enables an increase in the amount of your profits even with a small difference in rate. Of course, you also have a wide range of tools available such as orders that enable you to effectively manage your positions and reduce your risks. You will of course find lots of information about oil trading using CFDs on our website which also offers advice on how to best use these trading instruments. In this way you can start to use them when investing your capital in oil without having to go through an intermediary.

The oil market is both simple and complex. The fact of trading on a single asset is in itself an advantage, notably for inexperienced investors, especially as oil is a relatively simple asset to analyse with a large amount of information available for your scrutiny. However the different actors in this market also exert a concrete and direct influence on the price of this commodity and it is of course absolutely necessary to know them well and understand the global operation of this market before starting to invest your capital. With the different articles available on our website you can learn everything you need to know about the oil market and how to become a real expert in this subject. For example, you will learn how this market is organised with details on the major oil producers, consumers and exporters throughout the world as well as how the price per barrel of oil is calculated. We will also explain how the geopolitical news and events or other exterior events can exert an influence on the rise or fall in the oil price per barrel. The factors that influence the price of black gold are actually quite well known and fairly easy to identify. Using some basic indicators such as the American dollar rate or the oil stocks in the United States it is possible to anticipate a rise or fall in the oil price. Once you have understood all this information that is explained to you clearly and in a straightforward manner you will surely be able to anticipate the variations in the oil price. Then all you have to do is simply fine tune your trading strategies and speculate in real time on the price per barrel of crude oil.
As an individual, the best method available for trading in oil is through the use of an online trading platform that specialises in CFDs. You will find this service widely available among brokers that enable you, through the use of CFDs, to speculate on oil and other assets such as shares and stock market indices or other commodities such as gold. The operation of CFDs could not be simpler and more convenient for the use of anyone that wishes to invest in the oil market without having any previous experience in trading. It simply requires that you take a position on the rise or the fall of the oil price at a given moment and close your position when the foreseen profits are reached or when you wish to cut your losses.

The actual price of a barrel of WTI is 106 dollars and you foresee a rise in this price due to a decrease in the American oil stocks. You therefore subscribe to a CFD on the rise. If the price per barrel does rise you can place an order or manually close your position and you will make a profit equivalent to the difference between your subscription price and the closing price. If, to the contrary, the price falls you will lose the difference between the subscription price and the closing price, unless you have speculated on the price falling.