How to trade Oil in the US? | Forex Factory

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How to trade Oil in the US?

  • #1
  • First Post: Jun 18, 2020 3:23pm Jun 18, 2020 3:23pm
I don't have a large account and am trying to trade oil small.

I'm in the US, so I can't trade CFD.
WTI futures contract is too large.
I believe an option is USO single stock futures, but this only has daytime hours.

Any options?
  • #2
  • Jun 22, 2020 1:01am Jun 22, 2020 1:01am
If you can't trade futures then ETFs might be your best bet. USO is a terrible product so I really can't recommend it. Energy ETFs are based on futures and highly influenced by the futures curve so be very very very cautious about that if you use them.

Otherwise, you could trade oil stocks that correlate well with oil futures. That might actually be the best way to do it since so you can avoid the futures curve pitfalls.
Self-sufficiency is the greatest of all wealth. - Epicurus
  • #3
  • Jun 22, 2020 1:29am Jun 22, 2020 1:29am
Or trade the oil refineries with CRAK etf

https://www.vaneck.com/etf/equity/crak/overview/
persistence and determination alone are omnipotent
  • #4
  • Jun 22, 2020 7:13pm Jun 22, 2020 7:13pm
Quoting EF5
If you can't trade futures then ETFs might be your best bet. USO is a terrible product so I really can't recommend it. Energy ETFs are based on futures and highly influenced by the futures curve so be very very very cautious about that if you use them. Otherwise, you could trade oil stocks that correlate well with oil futures. That might actually be the best way to do it since so you can avoid the futures curve pitfalls.
yea I could do etfs, but then I’m subject to the day trading rules. I guess I could use multiple accounts to address that but it would be annoying
  • #5
  • Jun 22, 2020 10:24pm Jun 22, 2020 10:24pm
Quoting Rabid Leper
{quote} yea I could do etfs, but then I’m subject to the day trading rules. I guess I could use multiple accounts to address that but it would be annoying
That’s a good point, I didn’t realize you were day trading. I seem to recall an account needing to have a minimum balance of 25k once the pattern day trader designation is applied so ETFs might not work in that case.
Self-sufficiency is the greatest of all wealth. - Epicurus
  • #6
  • Last Post: Jun 27, 2020 6:16pm Jun 27, 2020 6:16pm
I think I figured it out: Nadex knockout options
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