Crude oil futures traders can match their trading strategy with their risk tolerance.

Crude oil futures are known for their high volatility and wide price swings. By analyzing the crude oil futures market, traders select the tactics they believe will result in a profit before the crude oil futures contract expires. Buy and hold is probably the best known and most widely used trading strategy.

How to Trade Crude Oil Futures: A hypufiyuyuq.web.fc2.com Guide

Traders analyze fundamentals such as supply and demand and the geopolitical climate, and buy a crude oil futures contract in anticipation of a price increase or sell a crude oil futures contract if expecting the price to fall. The price must make a big enough move to give the trader a profit before the futures contract expires.

Crude oil traders formulate their investment decisions by applying technical indicators to crude oil price charts over different time periods. By using the same technical indicators on a two-minute chart, five-minute chart, one-hour chart and a day chart, traders decide whether to buy or sell a crude oil future. Technical traders often hold their positions open a week or longer to give the trade time to develop.

Day Trading Crude Oil Futures : Cannon Trading

Swing trading involves buying a security and holding it for a short time period that ranges from a few minutes up to four days. Swing traders buy a futures contract if the market is trending up and sell if the market trends down. Swing trading is very risky, and traders can lose money quickly if the market unexpectedly moves against them.

Spread trading involves buying one crude oil futures contract in one month and selling another crude oil futures contract in a farther out month. The goal is to profit from the expected change between the purchase and selling price of both contracts. The trader would buy a March contract and sell a June contract to close out the trade. But if the spread contracts, the trader will realize a loss. She received a bachelor's degree in business administration from the University of South Florida.

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Visit performance for information about the performance oil futures trading strategies displayed above. Skip to main content. Buy and Hold Trading Strategy Buy and hold is probably the best known and most widely used trading strategy.

Technical Analysis Trading Strategy Crude oil traders formulate their investment decisions by applying technical indicators to crude oil price charts over different time periods.

Swing Trading Strategy Swing trading involves buying a security and holding it for a short time period that ranges from a few minutes up to four days.

Spread Trading Strategy Best foreign exchange rates in bangkok trading involves buying one crude oil futures contract in one month and selling another crude oil futures contract in a farther out month.

References 2 Oil Trading Systems: Strategies for Trading Crude Oil Futures Money Crashers: Crude Oil Futures Trading About the Author Based in St. Recommended Articles How to Trade Oil on Stock Exchange The Correlation Between Pre-Market Futures and Daily Close Oil Effect on the Stock Market in India Factors Affecting Foreign Investments in Nigeria.

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