Why recommend trading CFDs on crude oil?

ATFX

Publish date: Fri, 29 Jan 2021, 03:26 PM

The popularity of CFD trading has increased dramatically in recent years, as this field has a large number of advantages, compared to other financial instruments, including:

Access to a variety of markets through one platform - Investors can speculate in a number of large markets, such as currency or commodity markets.
Diverse Trading Options - Trading CFDs on a number of different instruments is a great way to ensure you have flexible trading opportunities and a diversified investment record.
Greater financial efficiency - margin requirements for CFDs are usually lower compared to other trading options.
Lack of complications - some financial markets require a minimum amount of capital for day trading, but this does not apply to CFD trading, which makes it an attractive option for those who prefer day trading. Also, trading CFDs with a well-known and successful broker allows day traders to easily and conveniently conduct deals in various commodity markets.
Liquidity - CFDs are usually traded directly with the broker, who here is the market maker, which creates a greater degree of liquidity compared to other alternatives such as futures contracts.
Flexibility - CFDs do not have fixed expiration dates like futures contracts, and this means that a CFD can be extended indefinitely, as long as it is backed by sufficient capital and no seller or buyer opposes its continuity.

Competitive Trading Cost - CFDs on Oil are designed to give investors the advantages of trading commodities on an exchange without incurring the associated costs.

Contracts for difference are one of the best and easiest methods of speculating on oil prices. Oil, like gold, is one of the most popular assets in the trading market, which means that any trader can enter and exit trades at any time, regardless of their size.

Oil prices are set based on a number of external factors, and are more sensitive compared to other commodities. These factors include the outbreak of civil war in the oil-producing countries, the change of government policy with regard to pipelines, the rapid increase in productivity, the increase in demand in developing markets, and others, which result in continuous changes in the rates of supply and demand.

Investing in oil prices by combining awareness of current affairs with the study of graphical analyzes can be considered the most effective means of trading crude oil, as oil prices can move in either direction based on a different number of unexpected events and pressures, so the trader must have A comprehensive vision so that he can trade oil more effectively. This is what distinguishes oil from other commodities and tools.

Usually, oil CFD traders put strict stop-out strategies in order to avoid heavy losses due to rapid price changes. Therefore, we recommend setting a maximum loss when trading CFDs on oil, in order to be able to achieve the maximum benefit from your investments, in addition to controlling the potential risk of loss, which must be present when speculating on a volatile and unexpected asset like this.

ATFX is a co-brand shared by a group entities including:

AT Global Markets (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with registration number 760555. The Registered Office: 1st Floor, 32 Cornhill, London EC3V 3SG, United Kingdom.
AT Global Markets LLC is a Limited Liability Company in Saint Vincent and the Grenadines with company number 333 LLC 2020. The Registered Office: 1st Floor, First St. Vincent Bank Bldg, James Street, Kingstown, St. Vincent and the Grenadines.
ATFX Global Markets (CY) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under the license no. 285/15. The Registered Office: 159 Leontiou A' Street, Maryvonne Building Office 204, 3022, Limassol, Cyprus.
AT Global Markets Intl Ltd is authorized and regulated by the Financial Services Commission with license Number C118023331. The Registered Office: Suite 207, 2nd Floor, The Catalyst, Silicon Avenue, 40 Cybercity, 72201 Ebène, Republic of Mauritius.

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