Trading Oil through ForexVox allows you to trade the price movements of the global oil market which fuels the world.
If the price of oil rises due to increased demand around the world, then the price of an Oil CFD will also increase. The same will happen if demand for oil falls and as a result the global price of oil falls. This will also be represented in the price of an Oil CFD.
Why trade Oil?
- Competitive spreads
- Benefit from the leverage on CFDs
- Easy execution on MT5
Tips when trading Oil
- Oil is quoted in US Dollars
- 1 CFD lot of oil is 1,000 barrels
- Oil prices can vary dependent on the location they're produced from
- WTI is the most traded oil, and usually represents the price of oil in the US
- Brent is the second most traded oil type and represents the price of oil in the North Sea
If you were to buy oil at a price of $55 and then there was a shortage of oil around the world which in turn increased the price to $58 dollars, you would have made $3.
If you had bought 1 CFD lot, and made $3 on the price movement, this would result in a profit of $3,000. However, in turn, if oil was to fall from $55 down to $54 because there was an increase in supply around the world, you would have lost $1 on the trade which in turn would be a loss of $1,000.
Open your account
Start your trading journey now