How to Invest/trade in Oil?
Sunday, November 22nd, 2009 at
8:18 am
sncoupons asked:
Crude oil price has dropped a LOT in recent time on per barrel bases and also the fact that it is reflected on per gallon price on gas pump. If I want to put my money on belief that it can not stay so low for too long and want to take advantage of low oil price, what is the best way to invest/trade? Is there any Oil index that I can buy/sell as share/fund? Or do I need to do it as commodity trading and open a commodity account?
Can someone please throw light on it? I am not interested in crude oil explorer companies like XOM etc but more interested to invest something that moves based on crude oil price. Please help
Crude oil price has dropped a LOT in recent time on per barrel bases and also the fact that it is reflected on per gallon price on gas pump. If I want to put my money on belief that it can not stay so low for too long and want to take advantage of low oil price, what is the best way to invest/trade? Is there any Oil index that I can buy/sell as share/fund? Or do I need to do it as commodity trading and open a commodity account?
Can someone please throw light on it? I am not interested in crude oil explorer companies like XOM etc but more interested to invest something that moves based on crude oil price. Please help
Filed under: Commodity Trading
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For someone that is getting started The EFT “USO” is probably the best. The price move reflects that of the price of oil. There is also a gasoline and heating oil ETF but they are much more thinly traded.
Your other option is the futures market but much more dangerous, can lose more than your initial investment, and have to worry about expiration dates.
be careful commodity price are volatile and extremely hard to make money in.