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Oil commodity trading is very similar to trading Forex, stock indices, or anything else you can trade online. But there are two large advantages over buying shares.
First, you can profit from rising or falling prices to take your profit. Also, you can use "leverage", which means that you deposit a small amount of money but control a large amount of oil. A small move can be very profitable. This can be potentially risky so you place a "stop loss" to close the trade if the price moves against you by a set amount.
You can trade oil on the "MetaTrader 4" platform. MetaTrader 4 is an online trading platform. The platform includes all necessary components for brokerage services via internet including the back office and dealing desk. Here is an example of how typical oil trading online works: You notice that the quoted price is 81.50 - 81.56, which means that you can buy oil at 81.56 and sell at 81.50 - the difference in prices is the broker's profit. You have a sell signal on our chart, so you sell 0.1 contracts or $1 (or £1) a pip. A 'pip' is the smallest possible movement, which in this case is 0.01 or a one cent move. At the same time, you place a stop loss at 82.40 (90 pips up in the 'wrong' direction because you are selling and want the price to go down) and take a profit of 80.00 (150 pips in the hoped-for direction). Now, you simply wait anywhere from ten minutes to a few hours. It's not always this easy, but with online software even the little guy can trade like a pro. Usually, you reach the limit and the trade is automatically closed by the software. Of course ideally you trade for a lot more - $10 a pip or greater. For example, trading a whole contract would have resulted in a $1,500 profit, which is very realistic and not too bad for a few hour's 'work'!
Ron Ferguson is an "Online Opportunity Investigator". Don't try Oil Commodity Trading by yourself! You need a mentor to guide you if you want to succeed. There's a good one at [http://www.bizsymmetry.com]
Article Source: http://EzineArticles.com/?expert=Ron_Ferguson
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