Oil on Forex
It would seem that the article title is a typo, since Forex is a currency market, and therefore
only currencies can be traded there.
However, the well-known MetaTrader trading terminal allows trading not only on the currency market, so assets such as gas, oil, and precious metals can also be used as trading instruments.
Oil can be bought or sold on Forex just like any other currency. Technically, this operation is no different from trading currency pairs, but there are still some differences.
• Oil quote - displays the price for 1 barrel, that is, how many dollars will need to be paid for 1 barrel of oil, at the moment the price is around 100 dollars.
• 1 Lot of oil - Just like with Forex currency pairs, oil trading has its own standardized size: 1 lot of oil equals 100 barrels. At current prices, this is equivalent to approximately $10,000.
• Oil spread - fluctuates between 3 and 15 dollars per barrel, that is, when opening a transaction of 1 lot, you will have to pay on average about 30-150 dollars, depending on the market situation and the trading conditions that are set dealing centersWhen comparing spreads across currency pairs, the commission for oil is significantly higher, suggesting that oil trading requires longer-term trades.
What do you need to trade oil?
Select a broker If you have this trading tool, download the trading terminal. Then follow the standard procedure: top up your account, find oil in the quotes window, and if it's not there, add it.
To do this, right-click on the quotes window and select "Symbols"; oil is in the "Futures". We add and open the oil chart for analysis and trading.
Oil trading has its own unique characteristics: it's advisable not to use high leverage and avoid short-term trades. Oil prices also have a clear seasonal pattern. Overall, it's a fairly successful tool for generating profits with good price predictability.
