Oil futures trading is a risky, fast-paced market with the potential to generate big profits. Only those who understand how to play the market and for whom a loss would not be life-changing should consider getting involved in this type of high-risk trade.URL :theinvestorscentre.co.uk

A crude oil futures contract is an agreement to buy or sell a certain amount of the underlying commodity at a fixed price on a specific date in the future. The most popular Crude Oil Futures contracts are Brent Crude (ICE) and West Texas Intermediate (NYMEX). One futures contract represents 1,000 barrels of the underlying product, though some traders choose to purchase or sell a smaller quantity known as an E-Mini contract. Each month, new crude oil futures contracts expire.

A Comprehensive Guide to Oil Futures Trading Platforms

Traditionally, oil futures were bought by large corporations that dealt with the physical commodity in their business dealings. However, today, a wide variety of investment institutions are active in this high-risk commodity, including hedge funds, mutual fund companies, and banks.

The price of crude oil moves on a number of factors, from supply and demand to the fundamental dynamics of world geopolitics and economic growth. It also responds to headline news that can spark unanticipated volatility. The ability to effectively identify and take advantage of market turbulence is an essential element of crude oil day trading success, as is being mindful of key market events like OPEC meetings, weekly API and WTI inventories reports, and global production and consumption data.