{"id":52269,"date":"2020-04-09T11:13:21","date_gmt":"2020-04-09T11:13:21","guid":{"rendered":"https:\/\/new.realforexreviews.com\/?post_type=broker_asset&p=52269"},"modified":"2021-11-30T10:56:31","modified_gmt":"2021-11-30T10:56:31","slug":"plus500-crude-oil","status":"publish","type":"broker_asset","link":"https:\/\/www.realforexreviews.com\/pt-pt\/broker-asset\/plus500-crude-oil","title":{"rendered":"Plus500 Crude Oil Commodity CFD Trading"},"content":{"rendered":"\n

 <\/p>\n84% 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<\/span>\n

Introduction<\/h2>\n
\n
\n
<\/div>\n
\n <\/span>\n <\/span>\n \n <\/i>\n <\/i>\n <\/span>\n <\/span> <\/span>\n <\/div>\n <\/div>\n<\/div>\n

 <\/p>\n\n\n\n

Since oil supplanted coal as a source of energy for many of our societies\u2019 needs (i.e. automobiles), it has been the consensus that\u00a0oil is a valuable resource.<\/strong><\/p>\n\n\n\n

Hence\u2026<\/em>\u00a0<\/p>\n\n\n\n

It has attracted, and still attracts many participants in the market. <\/p>\n\n\n\n

Are you one of them?<\/p>\n\n\n\n

If not, would you like to be one of them? Worry not as we have your back.<\/p>\n\n\n\n

Read on!<\/strong><\/p>\n\n\n\n

Generally, commodities are raw materials<\/strong> which are bought and sold in the marketplace. These in turn are being used to create further goods as end-products. Considering that commodities have widespread uses in different societies, they are being actively traded. This active trading creates constant movement in terms of price action basing on the sentiments of the traders, or more importantly \u2013 the dynamics of supply and demand.<\/strong>For starters\u2026<\/em>Crude oil<\/a> is a fossil fuel which could be processed into further goods and then could be sold to consumers such as: diesel, gasoline, or other petrochemical variations. It is known that crude oil is a limited resource<\/strong> (the supply is limited); hence its market price will be in constant movement that is brought about by the supply-demand interaction.   Look at this chart and notice how the price of this commodity has varied greatly over the past years:<\/em><\/canvas>And the good news?<\/em> That particular volatility is attractive to traders as that gives them enough opportunities to profit. These market players could participate in the market\u2019s price action<\/strong> by trading (buying and selling) spot contracts<\/a> and\/or futures.   Spot contracts are contracts wherein the contract\u2019s price is the current market price of crude oil, while futures are contracts wherein whose prices are those that the buyers are willing to pay for a future delivery date.   Please bear in mind that:<\/em> The prices of futures contracts are NEVER<\/strong> guaranteed to have the price of crude oil match them once the delivery date has arrived. Instead, futures are being by traders used to hedge \u2013 or to manage risk \u2013 or as a space to speculate. <\/p>\n\n\n\n

Crude oil CFDs<\/h2>\n\n\n\n

Contracts for differences<\/strong>\u00a0\u2013 or better known as\u00a0CFDs<\/strong>\u00a0\u2013 are examples of derivatives. A derivative maybe is an uncommon term for you, so let us discuss it further. \u00a0\u00a0To begin with\u2026<\/em>\u00a0Derivatives are also financial instruments but whose prices are being derived from separate entities (the individual assets for which they are based upon \u2013 in this case crude oil). Implementing a CFD transaction involves a process wherein the settlement is based on the difference of the opening and closing prices \u2013 are to be done in cash. It is an agreement to exchange the difference in valuation between the contract\u2019s price when it was first opened and the contract\u2019s price once it was closed. \u00a0\u00a0The trading process is more efficient in terms of cost and time than trading other instruments<\/strong>\u00a0as it does not involve transfer of anything. Unlike when trading stocks \u2013 wherein there is a transfer of shares that\u2019s being done; or in the case of commodities \u2013 wherein sometimes there is a transfer of physical goods taking place. CFDs also permit traders to speculate about the possible future direction of the price action of crude oil and execute a trade basing on that analysis. \u00a0\u00a0Simply\u2026<\/em>\u00a0Crude oil traders use these CFD instruments \u2013 or other derivatives \u2013\u00a0to make bets on whether crude oil\u2019s market price will go UP or go DOWN.<\/strong>\u00a0CFDs are also beneficial to crude oil market participants because they are able to profit no matter what the market\u2019s general direction is (i.e. trending up or trending down); as CFDs allow crude oil traders to go long (buy and they could sell at a higher price for a profit), or go short instead (sell and buy back what they have earlier sold at a lower price for a profit). Furthermore,\u00a0these financial instruments enable these traders to manage their risk better<\/strong>\u00a0and be exposed to more profit opportunities. \u00a0\u00a0Why does this matter?<\/em>\u00a0If you\u2019re still reading this part, you surely are now interested in learning more and maybe even excited on making your first trade! Without further ado, let us introduce this awesome broker:\u00a0Plus500<\/a>. You should go and create an account right now at\u00a0www.plus500.com<\/a>\u00a0and explore its platform.\u00a0<\/p>\n\n\n\n

What is Plus500?<\/h2>\n\n\n\n

Plus500 is a leading provider of CFDs<\/strong>, bringing to you its trading resources on stocks, commodities, forex, ETFs, options, and indices, and the newest product to hit the financial markets:\u00a0cryptocurrencies<\/a>. Plus500 is the platform being offered by Plus500UK Ltd, a UK-based company. The company, which was founded in 2008, is expanding quickly as a CFD provider not only in Europe but also in Asia. It has currently\u00a0over 2000 instruments<\/strong>\u00a0which it offers to over a million clients. \u00a0\u00a0Also\u2026<\/em>\u00a0In 2018,\u00a0Plus500UK Ltd has joined the UK FTSE 250 index<\/a>\u00a0as a leading mid-cap company.\u00a0It is a publicly-listed company!<\/strong>\u00a0Not bad, right? It is regulated by the Financial Conduct Authority (FCA). FCA has rules and regulations to ensure that this broker offers top-quality and fair services to you and their other clients. \u00a0 As another testament to their objective of transparency, Plus500 your (and all of their clients\u2019) money are held in segregated client bank accounts to ensure that your money will be accounted for. It also offers 24\/7 support should you have questions with your transactions. \u00a0\u00a0Bottomline?<\/em>\u00a0It has your best interests in mind.<\/p>\n\n\n\n

Let us now go over the different features of the Plus500 platform in detail.  <\/p>\n\n\n\n

Summary<\/h2>\n\n\n\n

It is a rather simple yet thorough platform.<\/strong> Plus500 made sure that your experience in the end-to-end process (creating an account, depositing funds, trade execution, and withdrawing money) is as smooth and as direct as possible.   Let us take creating an account as an example:<\/em> You are given the option of logging in via your existing Facebook or Google account<\/strong>, aside from registering your email address. The characteristics of simplicity and thoroughness are evident upon seeing the over-all design of the platform. Selected financial instruments are already displayed on the top pane. These instruments could be grouped via the following: their popularity (among majority of the clients), risers and fallers (the names whose prices moved the most), the type of financial instrument (commodities, Forex pairs, ETFs, Stocks, etc), and you could also create your own favourite list.   How could you add a financial instrument to your favourites?<\/em> At the right side of the instrument\u2019s name (i.e. oil), there is a \u2606<\/strong> icon. Just click that icon, once it is filled, then that instrument is added to your list. Additionally\u2026<\/em> You also are given the option of directly searching for the instrument of your choice. This is done by typing the name on the search field located at the top.  <\/p>\n\n\n\n

Pros and Cons<\/h2>\n\n\n\n

Pros<\/h3>\n\n\n\n