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About oil trading

  • #41
  • Aug 19, 2015 5:57pm Aug 19, 2015 5:57pm
UC and oil have the closest correlation. You may want to check correlation chart.
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #42
  • Aug 19, 2015 6:10pm Aug 19, 2015 6:10pm
thank you for that explanation!

i was just waiting for EURCAD to fill my order at a supply level and it went right through. now i know why.
  • #43
  • Aug 19, 2015 6:38pm Aug 19, 2015 6:38pm
Quoting inad07
thank you for that explanation! i was just waiting for EURCAD to fill my order at a supply level and it went right through. now i know why.
Here's a little tip that will save you some money. When trading a supply or demand level wait to see how price reacts to it. Never assume it will hold. You think price "might "halt and reverse. But don't just assume it will reverse
  • #44
  • Jan 10, 2016 11:39am Jan 10, 2016 11:39am
hello, crude oil only available for Future Trading with contract expiry? is there available for oil trading without contract expiry like forex trading?
  • #45
  • Jan 10, 2016 2:55pm Jan 10, 2016 2:55pm
No
  • #46
  • Jan 10, 2016 9:40pm Jan 10, 2016 9:40pm
why there is future (with expiry) and non-future (without expiry) for gold trading?
  • #47
  • Edited 10:02pm Jan 10, 2016 9:51pm | Edited 10:02pm
Quoting klhh
why there is future (with expiry) and non-future (without expiry) for gold trading?
Some brokers offer CFD's that include Oil, such as TradersWay. You can check them out HERE. They offer Demo accounts for you to try.

A CFD, or a Contract For Difference, is an agreement between two parties to exchange the difference between the opening and the closing prices of a contract at the moment of the contract closure, with this difference multiplied by the number of units of the asset specified in the contract. A CFD is a derivative linked to the underlying asset price. It does not involve physical asset delivery.

GREEN pips to you.
  • #48
  • Jan 10, 2016 11:03pm Jan 10, 2016 11:03pm
Quoting SmoothTrader
{quote} Some brokers offer CFD's that include Oil, such as TradersWay. You can check them out HERE. They offer Demo accounts for you to try. A CFD, or a Contract For Difference, is an agreement between two parties to exchange the difference between the opening and the closing prices of a contract at the moment of the contract closure, with this difference multiplied by the number of units of the asset specified in the contract. A CFD is a derivative linked to the underlying asset price. It does not...
Thanks for SmoothTrader reply

CFD mean no expired date to deliver physical asset right? Both Forex trading (forex pairs in MT4) and gold trading considered as CFD right? Can change the real physical asset by using CFD from the broker?
  • #49
  • Jan 11, 2016 4:23pm Jan 11, 2016 4:23pm
Quoting klhh
{quote} Thanks for SmoothTrader reply CFD mean no expired date to deliver physical asset right? Both Forex trading (forex pairs in MT4) and gold trading considered as CFD right? Can change the real physical asset by using CFD from the broker?
1-NO, forex isn't considered a CFD. Forex is actual currency. A gold CFD is just a derivative of a gold contract so has no influence on the actual price of gold regardless of how much you buy/sell.

2-NO, you cannot receive physical from your broker using a CFD. Even if you had the actual futures contract, only certain members are "qualified" to convert a futures contract to the physical metal.

3-A CFD doesn't expire because most brokers automatically roll to the next contract & pay/deduct the difference from your account to allow for the price difference in the futures contracts.
  • #50
  • Jan 11, 2016 8:13pm Jan 11, 2016 8:13pm
Quoting klhh
hello, crude oil only available for Future Trading with contract expiry? is there available for oil trading without contract expiry like forex trading?
Nothing wrong with expiration, just roll to the next month. Not sure which country you're in but you can use ETFs - In the US there's USO, XOP, OIH and some others. You can also use Leap options - no maintenance for 12 months.
  • #51
  • Jan 12, 2016 5:56am Jan 12, 2016 5:56am
Quoting srt
{quote} 1-NO, forex isn't considered a CFD. Forex is actual currency. A gold CFD is just a derivative of a gold contract so has no influence on the actual price of gold regardless of how much you buy/sell. 2-NO, you cannot receive physical from your broker using a CFD. Even if you had the actual futures contract, only certain members are "qualified" to convert a futures contract to the physical metal. 3-A CFD doesn't expire because most brokers automatically roll to the next contract & pay/deduct the difference from your account to allow for the...

TQVM for your clear explanation,
  • #52
  • Jan 12, 2016 5:58am Jan 12, 2016 5:58am
Quoting Rob Mondave
{quote} Nothing wrong with expiration, just roll to the next month. Not sure which country you're in but you can use ETFs - In the US there's USO, XOP, OIH and some others. You can also use Leap options - no maintenance for 12 months.
Thanks for your suggestion, I am from Malaysia.

why different month of contract, different price please?
  • #53
  • Jan 12, 2016 6:01am Jan 12, 2016 6:01am
I have 1 more question, forex pairs (in ecn mt4), let's say I buy EURUSD at 1.4000 for 1 standard lot with 1:500 leverage, my broker will deduct 280usd from account as margin used (140000/500=280), can I get actual EURO dollar from the broker?
  • #54
  • Edited 8:48pm Jan 12, 2016 8:26pm | Edited 8:48pm
Quoting klhh
I have 1 more question, forex pairs (in ecn mt4), let's say I buy EURUSD at 1.4000 for 1 standard lot with 1:500 leverage, my broker will deduct 280usd from account as margin used (140000/500=280), can I get actual EURO dollar from the broker?
1-Brokers aren't in the business of sending out physical currencies. You need to go to a bank or financial institution to do the exchange.

2-Even though your broker might allow you to TRADE with 500:1 leverage, that doesn't mean you have increased buying power if you were to convert to physical currency. The margin is enough for the broker to cover your trading losses. There's very little actual "buying" power.

If you bought 1 standard lot of EU at today's price(1.0845), you'd need about $108,450 of US cash (+ a spread) to make the exchange for physical currency.
  • #55
  • Jan 13, 2016 11:27am Jan 13, 2016 11:27am
Quoting srt
{quote} 1-Brokers aren't in the business of sending out physical currencies. You need to go to a bank or financial institution to do the exchange. 2-Even though your broker might allow you to TRADE with 500:1 leverage, that doesn't mean you have increased buying power if you were to convert to physical currency. The margin is enough for the broker to cover your trading losses. There's very little actual "buying" power. If you bought 1 standard lot of EU at today's price(1.0845), you'd need about $108,450 of US cash (+ a spread) to make the exchange...
MT4 ECN is real forex broker? if I buy EURUSD 100 standard lot, will this affect the exchange rate in the world?
  • #56
  • Jan 13, 2016 12:29pm Jan 13, 2016 12:29pm
Quoting klhh
{quote} MT4 ECN is real forex broker? if I buy EURUSD 100 standard lot, will this affect the exchange rate in the world?
MT4 is just a trading platform used by many forex brokers.

ECN (Electronic Communication Network) is a term used to describe the type of broker.

http://www.fxcc.com/what-is-ecn

Buying 100 lots will not affect the market. WAY too small.
  • #57
  • Jan 15, 2016 11:17am Jan 15, 2016 11:17am
Let's say GBPUSD is 1.5000 now, i don want trade forex, but i have 100k GBP in cash, let's say I am sure GBPUSD will be 1.0000, so i go to bank exchange my 100k GBP to usd, so i get 150k USD;
when GBPUSD become 1.0000, i change back my 100k USD to be 100k GBP, so my cash on hand is 100k GBP and 50k usd (net profit is 50k usd)

Lets say GBPUSD is 1.5000 now, i don want trade forex, but i have 100k GBP in cash, let's say I am sure GBPUSD will be 2.0000, in this case, how can i earn more in usd without trading forex? because initial investment is 100k GBP (when GBPUSD is 1.5000), but during GBPUSD 2.0000, my cash on hand still remain 100k GBP
  • #58
  • Mar 4, 2016 9:20am Mar 4, 2016 9:20am
Okay, What I want to do is open a long position for oil to hold for a multi-year period of time. I know there are various providers who have oil CFDs, like IG Markets and CMC Markets. The thing is I understand there are "financing costs" for holding an oil CFD for a longer period of time, and I have no knowledge relating to how to determine which broker and which instrument offers the best "deal". I assume this may be a good place to ask for advice on this as there are many traders on here with presumably better understanding of how CFDs work.
What is the best option out there for a buy and hold position on oil?
Thank you for any sound advice you are able to provide
  • #59
  • Mar 5, 2016 9:13pm Mar 5, 2016 9:13pm
why don't you buy Oil ETF instead? for eg. USO. They will charge 0.45%/Year, so if you hold for 3 years, total cost will be less than 1.5%
  • #60
  • Mar 6, 2016 1:59pm Mar 6, 2016 1:59pm
Thanks for your reply charron. I don't know. I have very little experience with ETFs. I don't really understand them (perhaps you could explain). All I want to do is go long on the oil price. I checked out USO, but it doesn't seem to mimic the oil price itself as the price is 9,65USD... Does an ETF exist that exactly follows the price of oil? "9,65" means little to me, I sort of wouldn't know at what price to sell it.
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