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Petrol

Oil is amongst the most popular assets that are traded in the financial markets through various financial instruments

Advantages of petrol trading

  • Trading is active 24 hours a day;
  • Physically accessible to everyone - only a computer and internet connection are required;
  • Lower costs - you don't need to physically transport or store the oil;
  • Trading financial instruments is more liquid than buying and selling physical oil;
  • You have the ability to react quickly;
  • Accessible with small amounts - with the financial instruments trading on margin is offered - i.e. you do not need to own the entire amount of the investment you make, but only a certain small percentage of the value of the instruments.

The wide application of oil, not only as an energy source, but also through the products obtained after its refining, make it extremely attractive to investors. Changes in its price are the result of both economic and geopolitical events.

Although petrol has been known to mankind for thousands of years, its importance grew in the second half of the 19th century, when a number of scientific discoveries led to the improvement of the crude oil distillation process and the possibility of extracting various petroleum products. After the invention of the internal combustion engine, the importance of oil as an energy source grew even more, and it began to occupy a prominent place as a resource determining the direction of the world economy.

The American oil barrel is used as the unit of measurement for "black gold", and this unit originates from the time of the first oil fields in Pennsylvania, USA. 1 barrel of oil equals to 42 gallons or approximately 159 liters.

Major types of crude oil

West Texas Intermediate

a light, sweet type of crude oil whose price is also used as a determinant. Its use in the production of gasoline makes it popular in the Chinese and US markets;

Brent

the name of this type of oil is derived from the name of the field in the North Sea where it was discovered in 1970. Its price is believed to have determined the price of about 40% of the world's oil grades since 1971.

Five ways to trade petrol


  • Through futures contracts – oil can be traded through standardized future contracts, which are most often used for hedging and speculation;

  • Through Contracts for Difference (CFD) - contracts for difference on future contracts related to various types of raw materials enable hedging and speculation with smaller volumes and without commissions;

  • Through Exchange-Traded Funds (ETFs) – Oil can be traded through exchange-traded funds, which are investment funds traded on exchanges like stocks. They reflect the movement of a certain index, sector of the economy or raw material. In oil, there are a number of ETFs that reflect various companies engaged in the extraction, processing and use of oil and oil products;

  • Through Exchange-Traded Commodity (ETC) - They are similar to exchange-traded funds, except that they track the performance of a commodity or an index based on a basket of commodities. These funds, just like ETFs, are traded like stocks on regulated exchanges;

  • Through exchange-traded options – An option is a derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset (currency, indices, shares, commodities, etc.) at a certain pre-agreed price (called the exercise price). , at a predetermined future time (option expiration). For this purpose, the buyer pays a certain price to the seller of the option in the form of a premium. Options are used to hedge positions and speculate, and one of their advantages is that the maximum loss from the option is clear in advance at the time of purchase in most option strategies;

Discover opportunities for speculation by trading commodities such as oil, natural gas, corn, wheat, coffee and many more.

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Trade via:
ELANA Global Trader
FOREX359
Exchange traded commodities (ETC)
Futures
CFDs on futures
Options on futures

Why should you choose us?

We have over 30 years of history as a leading investment intermediary with an impeccable reputation and a number of awards. Our company is a member of the Bulgarian Association of Licensed Investment Intermediaries, the Bulgarian Stock Exchange, the Central Depository and the Investor Compensation Fund.

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