I just came across an article about crude oil trading and found it quite interesting. Turns out, besides traditional investing methods, you can trade crude oil through futures contracts or CFDs, and potentially make much higher profits if you know how to manage risk.

The great thing about crude oil trading is its high volatility. Just a 1% change in the price of WTI or Brent oil in a day can yield quite good profits. I did some quick calculations, and with appropriate leverage, you only need a few hundred USD in margin to get started. Transaction costs are also not high, mainly just the floating spread.

But the key is to choose a reputable broker. You need to carefully check their financial licenses (ASIC, FCA, CySEC are reputable organizations), commission fees, and trading conditions. Since day trading crude oil is frequent, small fees can accumulate into significant amounts.

Oil prices are influenced by supply and demand, but the strongest impacts come from geopolitical events — wars, sanctions, OPEC production cuts... 2020 is a typical example, when prices dropped to negative $37 per barrel due to COVID. From 2021 to 2023, prices surged again due to economic recovery.

If you want to try trading crude oil, I suggest: learn thoroughly first, use a demo account, develop a clear trading plan, and manage risks tightly. Don’t get greedy because of volatility, as it can easily lead to account liquidation. Do you have any experience with the oil market? 💭