{"id":9399,"date":"2023-05-22T09:54:26","date_gmt":"2023-05-22T09:54:26","guid":{"rendered":"https:\/\/blog.vtmarkets.net\/?p=9399"},"modified":"2023-05-22T09:54:26","modified_gmt":"2023-05-22T09:54:26","slug":"how-to-trade-oil-cfds-a-comprehensive-guide","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.net\/fr\/learn\/how-to-trade-oil-cfds-a-comprehensive-guide\/","title":{"rendered":"How to trade oil CFDs: A comprehensive guide\u00a0"},"content":{"rendered":"\n

The oil and gas industry encompasses different types of oil, such as crude oil, no-lead gasoline, natural gas, and heating oils. Among these, crude oil remains the largest and most widely traded sector, sourced from various points of origin worldwide. <\/p>\n\n\n\n

Due to its extensive trading volume and diverse sources, crude oil is susceptible to geographic, political, and economic factors that make its market highly volatile. This volatility presents both risks and opportunities for traders interested in capitalising on the oil market. <\/p>\n\n\n

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The world’s biggest oil producers (2021) in million barrels per day.
source: statista.com, BP<\/sup><\/sub><\/figcaption><\/figure><\/div>\n\n\n
Understanding Oil CFDs<\/strong> <\/h5>\n\n\n\n

CFDs are derivative financial products that allow traders to gain exposure to a market, such as oil, without owning the underlying asset. <\/p>\n\n\n\n

Unlike physical trading, oil CFDs derive their profitability from speculating on price fluctuations rather than the buying and selling of the actual commodity. <\/p>\n\n\n\n

Successful trading of oil CFDs requires a deep understanding of market trends, factors driving price movements, and the ability to predict market dynamics. <\/p>\n\n\n\n

What Are Oil CFDs?<\/strong> <\/h5>\n\n\n\n

Oil CFDs enable traders to access the expansive oil market through leverage, offering increased exposure without the need to possess the physical asset. <\/p>\n\n\n\n

This increased exposure can diversify investment portfolios and reduce overall risk. Oil CFDs serve as conduits for trading in oil spot prices, oil futures, and oil options. <\/p>\n\n\n\n

The most commonly traded benchmarks<\/a> for crude oil CFDs are West Texas Intermediate (WTI) and Brent Crude Oil. <\/p>\n\n\n\n

Differentiating WTI and Brent Crude Oil<\/strong> <\/h5>\n\n\n\n

When trading oil CFDs, it is important to familiarise yourself with the two primary types of crude oil in the global market: WTI Crude Oil and Brent Crude Oil. <\/p>\n\n\n\n

These crude oils are rated based on their density and sulphur content, which impacts their quality and refining costs. <\/p>\n\n\n\n

Brent Crude Oil<\/strong> <\/h5>\n\n\n\n