eToro Crude Oil Commodities Trading

Crude Oil Page

Crude Oil

Introduction

Trading crude oil has attracted many participants over the years. Do not allow yourself to be left behind when it comes to being aboard this investment vehicle. And you could start by reading this article! Commodities are, more often than not, raw materials that are being bought and sold in the market. These materials are used as inputs to create additional end-products. Since these commodities are continuously traded, the market prices tend to fluctuate based on the dynamics of supply and demand or just even mere changes in the market sentiment. Crude oil is a kind of fossil fuel which could be processed into different end-products that could then be sold to consumers, like gasoline, diesel, and/or other petrochemical adaptations. [caption id="attachment_50833" align="alignleft" width="300"]Crude oil trading Crude oil trading[/caption] Since crude oil is a non-renewable resource (limited resource), hence its market price will be constantly be dictated by the changing movement of supply and demand. Its volatility makes it one of the favorite instruments of market participants because it creates ample opportunities for them to profit, REGARDLESS of the market’s general direction. Market participants could engage in the market’s price action by:
  • Buying and selling spot contracts (the spot contract’s price is crude oil’s current market price).

OR

  • Futures (wherein the contract’s price is the price in which the buyers are willing to pay for that particular crude oil contract on a future delivery date).
Do keep in mind: The futures contract’s price is NEVER guaranteed that crude oil would eventually be able to reach that price once the agreed-upon date has come. Instead... Futures are used as hedges (a risk-management tool), or as an avenue for speculation.
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*66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
 

Crude oil CFDs

CFDs or "contract for difference" are examples of derivatives. A brief background on derivatives: Derivatives are financial instruments whose prices are being derived from that of individual assets (in this particular case, the asset being crude oil). Executing a CFD transaction is a process where the settlement of the opening and closing prices are to be settled in cash. Furthermore... It is an arrangement (or contract) to exchange the valuation difference between the contract’s price when it was opened and the contract’s price when it was eventually closed. In addition to that: There is no actual transfer of shares (like in stock trading), nor a transfer of physical goods (like in some scenarios when trading commodities) that occur. Bottom line? These are pure contract transactions; hence this makes the trading process more efficient (in terms of time and cost). CFDs also enable crude oil traders to speculate and then to trade (the manner that they execute would be based on their analysis and previous testing) the price action of the underlying products (i.e. crude oil). In essence... Crude oil traders use these CFDs, or other derivatives, to bet on whether the price of crude oil will rise or decline in value. CFD products are also beneficial to crude oil traders because in that they could profit regardless of the general market’s direction (whether markets are trending up or down).
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*66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
  What's more... These products allow traders to: Go long: Profit if the price is rising as traders will be able to sell higher. OR Go short: Profit if the price is declining as traders will be able to buy at a lower price what they previously sold at a higher price. Moreover... CFDs allow crude oil traders to be exposed to more opportunities and where risk is more comparatively managed as a form of diversification. Have we caught your attention yet? We're sure we did. Since we’ve caught your interest in exploring this rewarding yet challenging world of trading crude oil CFDs, then you should go visit eToro right this instant.
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*66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
  The company is one of the leading brokers of currencies and CFDs. Also, they introduced the FIRST social trading platform, and it is the world’s leading social trading network. For more than 10 years, eToro has been a leader in the global Fintech movement. They started out back in 2007 with the mission of making trading accessible to anyone and anywhere. They set out to disrupt the status quo of trading back then. It is a fully regulated broker, as it adheres to the strict guidelines of different regulatory bodies such as: CySEC, FCA, and ASIC. It is committed in its goal for continuous innovation, integrity, security, and excellence. This is also evidenced by the company taking every precaution to keep your information and funds secure by engaging the highest standards of cyber security, and having the funds secured in tier 1 European banks. That’s definitely not all... Let us now proceed with discussing the awesome features of eToro in detail.

Summary

As a platform, it is safe to say that eToro is fairly easy to navigate around and simple to use. The WHOLE process of creating an account, depositing funds, executing trades, and withdrawing your money is EASY to do. Let us take signing-up as an example: You would also have the option of signing-up via your Facebook or Google accounts, aside from the usual process of registering an email address. [caption id="attachment_50859" align="alignleft" width="300"]eToro online trading platform eToro online trading platform[/caption] The over-all layout of the page also offers simplicity and efficiency, as the financial instruments are ready to be chosen from on the main window. The default list shown is your "Watchlist", so any financial instrument that you have prioritized would show up there. Here's the thing: You may add or remove a name from your default Watchlist or you could even create a new one. [caption id="attachment_50877" align="alignright" width="300"]Crude oil in eToro's trading platform Crude oil in eToro's trading platform[/caption] If you would like to add crude oil to the list so that you could monitor it, you may use the search bar or click add markets (could be found once you scroll to the bottom of the instrument list), then locate the category where the instrument is included in (i.e. oil is under commodities). There are lots of other financial instrument options to choose from, ranging from currencies, commodities, indices, stocks, ETFs, and the newest one: cryptos.
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*66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
 

Pros

[caption id="attachment_50846" align="alignright" width="300"]eToro crude oil social trading eToro crude oil social trading[/caption] A feature that eToro has pioneered in is social trading. How can you actually use this?
You may VIEW and COPY the trades of other successful traders.
An objective is to leverage the social media-like features, like building a strong community of traders and investors, an avenue for sharing of wisdom and learning from trades – whether they may be successful and not. It leverages the advantages of the features of a broker platform and a social media platform, to offer the utmost service to you, as it also rewards the traders whose trades are being copied. They also offer competitive bid-ask spreads so as for you to not be greatly affected by slippages should markets turn volatile. [caption id="attachment_50891" align="alignright" width="300"]eToro crude oil price alert eToro crude oil price alert[/caption] It also has alerts that could be set-up to remind you should the prices reach a certain point. This feature will allow you to be notified should the price near a certain price threshold. The platform also has take profit and stop loss features. These are risk management tools that could be used in order better manage your trades.

Cons

The charts are not included in the main page. You will have to click the gear icon located on the upper right and click “Launch ProCharts”. ProCharts could also be launched by clicking the line chart next to the asset’s name. For those who prefer using technicals or price action in analyzing the possible price movements, this added step might be a disadvantage for them.

Education

The platform also has an education section to help you better be prepared in analyzing and executing your trades. But that's not all... This section includes daily updates on what happened to the markets, FinTech concepts (i.e. how to trade CFDs, currencies, etc), and a primer to social trading.
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*66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
 

How to trade CFDs using eToro

The platform’s simple yet robust features make it very easy for you to trade crude oil CFDs. [caption id="attachment_50820" align="alignright" width="274"]eToro crude oil trading eToro crude oil trading[/caption] Assuming that you already have done the necessary analysis beforehand, simply select "OIL" and then click "TRADE". You will then be prompted to a screen where you will have options to:
  1. Choose which transaction to do: buy or sell.
  2. What kind of order: Market rate or a limit order.
  3. The amount you would like to bet.
  4. The leverage that you would like to use (x1, x2, or x5).
  5. Set a stop loss order.
  6. Set a take profit order.
What’s the real story? Don’t be left behind and participate in one of the most actively traded markets globally! Trade crude oil now using eToro’s simple-to-use features and do take advantage of the platform’s innovation such as its social trading feature to maximize the potential profits that you can gain from this precious commodity. However, please do note to always manage your risk.
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*66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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Min Deposit
$200
Regulation
CYSEC, FCA
  • Copy investment portfolios of top oil traders
  • Practice with a free demo account
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  • Risk management tools
Rating
96
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66% of retail CFD accounts lose money

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.