Oil trading has been known for a long time to investors worldwide. It became rather attractive during the recent years when, for better or worse, we became witness to extremely high volatility in this raw material.
Oil was one of the most volatile assets during the recent years, as in July 2011 it marked a record in history reaching levels above $ 147 for a barrel.
Only six months later, we saw sharp, even unprecedented in the history of the raw material devaluation that led to a five-year low at levels of about $ 32 for a barrel.
Speculatively minded investors are fond of this tool for several reasons. The first one, as we have already mentioned, is the strong volatility, which unfortunately could lead to not only sizeable gains, but also to huge amounts of losses.
Another major reason for the mass raw material trading is the financial leverage that is provided by the mediators, giving the right to trade oil in international markets.
Thus for example, on bail of 3% (margin), you can now trade oil through the new platform Karoll – CMC Markets. What does this mean? This means that you can trade with 33 times more money than you have, that otherwise would not be sufficient.
Expect more articles on this theme…
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