The Oil market is HUGE!
We are going to discuss some of the way to trade Oil and when it might be a profitable time to trade it.
As you can see 1.7 Trillion is traded every year so it is a very deep and liquid market.
One of the best ways to trade Oil short term is the Futures Contract /CL
Crude Oil WTI (CL) — 1 Point = $1000. 2.1 point average daily range.
You need a larger account I would say, to trade the /CL effectively, but once you have built your account up its a good contract to trade.
The other way is to buy the Option ETF the USO
Total Assets $3,112,199.80
Average Trading Volume 33,548,480.0
As you can see it’s quite large so you can get in and out with size easily.
In times of unusual situations in the world, prices in Oil usually get very volatile so it’s a great opportunity to trade short term time frames with /CL.