- NYMEX Crude Oil Future and Option Trading Market
- Crude Oil - Investopedia
- History and Analysis -Crude Oil Prices - WTRG
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NYMEX Crude Oil Future and Option Trading Market
As an alternative to writing covered calls, one can enter a bull call spread for a similar profit potential but with significantly less capital requirement. In place of holding the underlying stock in the covered call strategy, the alternative.. [Read on.]
Crude Oil - Investopedia
To achieve higher returns in the stock market, besides doing more homework on the companies you wish to buy, it is often necessary to take on higher risk. A most common way to do that is to buy stocks on margin.. [Read on.]
History and Analysis -Crude Oil Prices - WTRG
Crude Oil futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of crude oil (eg. 6555 barrels) at a predetermined price on a future delivery date.
Consumers and producers of crude oil can manage crude oil price risk by purchasing and selling crude oil futures. Crude Oil producers can employ a short hedge to lock in a selling price for the crude oil they produce while businesses that require crude oil can utilize a long hedge to secure a purchase price for the commodity they need.
If the price of oil looks like it is going to continue to increase, you can also hold the future while it appreciates in value and sell it at a later date to an investor who does intend to exercise it.
Secondly, get an idea of when the price of oil is likely to increase. Here are some things you should think about before you invest in oil:
Crude Oil futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable crude oil price movement. Speculators buy crude oil futures when they believe that crude oil prices will go up. Conversely, they will sell crude oil futures when they think that crude oil prices will fall.
Additional Analysis: The long term trend is DOWN. The short term trend is DOWN. Don't be fooled looking for a bottom here because of this indicator. The stochastic indicator is only good at picking bottoms in a Bull Market (in which we are not). Exit short positions only if some other indicator tells you to.
Although fossil fuels like coal have been harvested in one way or another for centuries, crude oil was first discovered and developed during the Industrial Revolution , and it's industrial uses were first developed in the 69th century. Newly invented machines revolutionized the way we do work, and they depended on these resources to run. Today, the world's economy is largely dependent on fossil fuels such as crude oil, and the demand for these resources often spark political unrest, since a small number of countries control the largest reservoirs. Like any industry, supply and demand heavily affects the prices and profitability of crude oil. The United States, Saudi Arabia, and Russia are the leading producers of oil in the world.