Trading crude oil online has potentially created one of the most profitable financial markets worldwide. Since its inception this trade has significantly become popular in business circles. Most investors across the globe are currently considering it one of the best options to make money without much hassle. This trade is commonly done by speculators and investors alike. There are various elements and factors that can illustrate its current trend. Crude oil has a unique blend of properties that every investor would appreciate. These include easy transportability, abundance, high energy density etc.  These features give substantial volatility to its trading. In actual sense investors enjoy many opportunities due to these features.

The Merits

1. High Investment Returns

You enjoy greater chance to make huge profits by trading crude oil. Most people are still unaware of eh lucrative nature of this investment option available in the market. It is very possible to make tens of thousands of dollar with just a single trade. In addition, you can do this with very little investment as compared to stock market. The unpredictability of oil prices allows you reap huge profits in a short span of time.

2. 24 Hour Trading

Just like with Forex trading, this market offers round-the-clock trading opportunities. The only thing you need is a reliable internet connection. Any person can trade at any given time in any locality without any difficulty. The service is available daily on a 24-hr basis.

3. Leverage

You enjoy a remarkable level of leveraging by trading crude oil. But, there is no common standard of leverage. Most brokerage companies, usually Forex offers different levels of leverage which may depend on the size of account your hold. Leverage is beneficial because you get the opportunity to us little funds to trade high worth values.

4. Trading Concept Is Easy To Comprehend

You don’t have to learn the hard jargons to trade crude oil online. The trading process is similar to Forex trading. You can start trading once you understand how to trade Forex. It saves a lot to get help from your Forex trader or other experienced traders. Unlike other financial markets, this type of trading is easy to use and get started. For oil trading, I recommend HFX broker as a good broker that may assist you in trading commodities. Have a look at their details on HFX forex broker.

Having said that, if you’re not comfortable with unregulated broker, look into a regulated Finland based broker who provide good CFD trading service here: Ava FX review.

5. High Liquidity Internationally

Trading crude oil offers very high liquidity value worldwide. Oil is one of the most liquid investments available currently. This is because of very high quantities of trade that are transacted on regular basis. You can easily change your investments into cash at any given time regardless of locality.

Disadvantages

1. High Volatility

This is a very volatile investment option. It is difficult to predict precisely the extent to which oil prices can be within a few hours. Additionally, changes in the value of crude oil happen more rapid than experienced with equities or currencies.

2. High Sensitivity To Many Factors

Crude oil prices are very sensitive to a wide range of factors. Its sensitivity is influenced by many factors. This in turn contributes to its high volatility. Factors affecting crude oil prices range from wars, natural disasters, politics, major news stories etc.

3. Threats From Substitutes

Several companies, governments and world organizations are searching for alternative sources to crude oil. Currently there are new options like green energy. These alternatives have greater impact on the oil prices.

Conclusion

Investing in petroleum can be greatly profitable. Opportunities provided by trading crude oil are enormous and very profitable. Actually this is one of the investment strategies that allow you to make huge cash without sweating. However, just like Forex trading, the risks involved are great. It is pretty wise to understand the market very well before you start trading crude oil. Most importantly, understand the risks which are involved.

Oil is just one potential commodities that you could trade to gain great profits. Check out other prospects on trading precious metal on tips to trade gold.