Trade Oil CFDs
A contract for difference (CFD) is a contract under which the parties agree to exchange the cash difference between the opening value and the closing value of the contract. Commodities CFDs are over-the-counter contracts that give you exposure to price movements of the underlying commodities. Like other derivatives, CFDs allow investors to participate in the returns from movements in the underlying commodity, without actually owning it. You can trade Crude Oil and Natural Gas CFDs on the MT4 trading platform.
Features of Trading Oil CFDs
In contrast to futures trading, when you trade CFDs you don’t physically own the underlying product. There is no physical delivery of crude oil, so you are only trading the price difference. You can also go long or go short with CFD trading.
Determine Oil Prices
Current supply in terms of output, especially the production quota set by OPEC.
Oil reserves, including what is available in U.S. refineries and what is stored at the Strategic Petroleum Reserves.
Oil demand, particularly from the U.S. These estimates are provided monthly by the Energy Information Agency.
Advantages of Trading Oil CFDs
- Experience all the benefits of trading oil whilst still utilising MT4’s impressive functionality.
- Effectively manage your fund from 50:1 leverage
- Variable highly competitive spread.
- No added brokerage fees or commissions. The spread is your transaction cost.
- Keep track of oil and trade from MetaTrader 4 advanced charting package.
CFDs are leveraged contracts, which means a small price movement in the underlying asset on which they are based can result in substantially magnified profits or losses, exceeding your investment. Leverage allows investors to take larger exposures, however it similarly makes them susceptible to larger losses. Trading in CFDs and other OTC derivatives entails risk and is not suitable for investors who are not trading with risk capital (money you can afford to lose). CFDs are cash-settled and provide exposure to price movements in the underlying instrument, rather than ownership or physical delivery of the underlying instrument. Please ensure you obtain independent professional advice before investing in CFDs, and read our Financial Services Guide, and the issuer’s Product Disclosure Statement to ensure you understand the key risks and costs associated therewith. Please click here for further information regarding the risks.