How to Trade Crude Oil at IQ Option
If you are interested in crude oil trading, IQ Option can help you get started. Here are a few facts and figures that make IQ Option popular among crude oil traders. Trading crude oil presents valuable opportunities to profit in any market condition because of role crude oil plays in global politics and economics. Moreover, the volatility of the energy sector has increased, ensuring consistent profits for long-term as well as short-term trade positions.
Often, traders and investors fail to use the volatility of crude oil to their full benefit. This is mostly because they haven’t quite understood the unique features of the energy sector and also because they know nothing about market situations that destroy profits.
You have to understand the following key factors before trading crude oil:
- Crude oil is a highly liquid asset and you can try out a number of trading strategies on it.
- Before trading crude oil, you should determine if you would like to trade options, futures, or ETFs.
- Finally, you should focus on mastering the fundamentals of crude oil trading, learning to read charts, and determining the chief factors that are responsible for price movements, demand, and supply of this commodity.
WTI Crude Oil vs. Brent Crude Oil
The primary crude oil markets are Brent Crude and West Texas Intermediate (WTI) Crude. While the latter is sourced in the Permian Basin of the US, the latter is found in the oil wells of the North Atlantic.
The two crude oil varieties have different amounts of sulphur and different API gravity levels. In recent years, Brent Crude has emerged as a major pricing indicator although WTI was traded more heavily in futures markets across the globe a few years back.
Several Trading Options
A number of energy-based products are traded through the New York Mercantile Exchange (NYMEX) and WTI Light Sweet Crude Oil happens to have a high trading volume of over 10 million trades per month. While it has high liquidity, it is also associated with huge risks because of its minimum price fluctuation of .01 per barrel and its contract unit of 1000 barrels. The US Oil Fund, which has a high trading volume of over 20 million shares per day, is also a popular way to trade crude oil. US oil company funds also offer a variety of opportunities and trends. Some of the oil funds with a high daily trading volume are the SPDR Energy Select Fund, iShares US Energy ETF, VanEck Vectors Oil Services ETF, and Vanguard Energy Index Fund ETF, to mention a few. Since economy is closely related to the energy sector in many countries, currency trading is also a great way to enter long-term crude oil positions indirectly. For example, the US Dollar, the Mexican Peso, and the Columbian Peso track crude oil and have been doing so for the past several years, giving speculators the opportunity to benefit from these highly liquid instruments.IQ Option – Facts and Figures
Launched in 2013, IQ Option is today home to a large community of over 48 million traders and investors from over 200 countries. The number of trades made per day at IQ Options has increased by over 800 percent between the years 2014 and 2020. The online broker reports a 2100% increase of monthly trading volume during the same period. In 2020, traders withdraw 2.9 times more in profits than they did in 2016. You don’t have to wait long for your profits at IQ Option as it introduced instant withdrawals in 2016, enabling it to process 68% payout requests instantly. Today, the online broker processes payout requests in just 11 hours. The IQ Option support team is excellent; you have to wait only 43 seconds to get an answer to your question through live chat. As for emails, you can expect a quick, personalized, and friendly response in just 20 minutes. This is possible because the online broker has a team of 79 highly qualified customer support agents.Wide Range of Trading Options
IQ Option allows you to choose from hundreds of instruments across seven major classes of assets, including options, stocks, Forex, ETF, cryptocurrencies, indices, and commodities. You can do direct commodity trading as the online broker offers trading in five commodities—Platinum, Crude Oil WTI, Crude Oil Brent, Gold, and Silver. Also, you can trade crude oil through currency pairs, ETFs, futures, and stocks.Getting Started with Crude Oil Trading at IQ Option
To get started at IQ Option, you have to open an account. This is as easy as clicking on the Sign Up button at the top of the website. You can register by either filling in a simple online registration form or through existing accounts on Facebook or Google. If you are new to IQ Option, you can get started with a demo account or a practice account, where you can learn the basics of crude oil trading and test your trading strategies in a risk-free environment, without spending real money.Ways to Trade Crude Oil
Here are the ways to trade crude oil at IQ Option:- Futures: You can purchase oil futures at IQ Option. While these are highly risky and volatile, they also promise great returns. However, you should trade oil futures only after thorough research and study. Also, trading oil futures without capital is not worth it.
- ETFs: Exchange Traded Funds (ETFs) are traded on a stock exchange just as you trade stocks of major companies. For example, you would be trading a barrel of oil if you buy a US Oil Fund (USO) share.