Quotes oil profits for the trader
Oil - the most strategic raw materials, which plays a pivotal role in the production of fuels and lubricants. So, oil quotes (its cost) affect a large range of real economic sector. So it is quite normal that the price of "black gold" - the cornerstone of the global economy. Change oil quotations capable as cause strong growth and cause a reduction in price of an asset or the stock exchange market. Particularly strong effect of oil prices on the markets, which are developed and focused on its exports. Ignoring oil quotes, impossible to trade profitably in the stock market of Russia.
Concept in oil prices
By the phrase "oil quotes" mean price of oil futures, ie contracts, which determine the price of oil in the future. Also distinguish several varieties of oil (Brent et al.)
The cost of oil is a very important indicator for the Russian stock market. The dynamics of these quotations is determined mainly economic situation in the United States. To effectively predict the dynamics of the stock exchange, review the cost of oil is needed for some time (a week), and not just today's price.
Understanding quotes "black gold"
Reading abbreviations for the price of oil is very similar to decipher acronyms Forex currency pairs. Say, UKOIL shows ratio of the cost of Brent crude oil to the value of the U.S. dollar. USOIL - West Texas Intermediate crude oil to the U.S., etc.
The cost of oil is shown in international format - a certain amount of dollars per barrel. Ie if we see the inscription UKOIL = 45,50, we understand that one barrel of oil (brand Brent) worth $45.4.
Buying and selling oil, or rather, futures on oil, through a broker, all similar in Forex currency pairs. We have the purchase price (ask), sale (bid) and, accordingly, the spread (the difference between the buy and sell price).
Transactions on the oil on the stock exchange
Typical price of oil brand Brent, which can be seen - 49,52/59. This means that we can sell one or more lots, i.e. contracts, UKOIL cost 50.52 per barrel, or buy one for 49.59 a barrel. The spread in this case is 49,59-49,52 = 0.07.
Most often, the minimum number of "black gold" to be traded on the stock exchange, is equal to one lot = 100 barrels. Trading one lot, the minimum change in price, ie 1 point = 0.01, equals $1.
And finally, we give some examples of real oil trade.
Example number 1. Let's say you bought 1 lot UKOIL Brent crude oil cost 50.52. After 10 minutes, the price rose to 50.95 and you have decided to withdraw from the transaction.
In fact, you've earned 50,95-50,52 = 0.43, ie 43 points. 1 item in our case is equal to $1, so your profit is $43.
Example number 2. We purchased 1 lot UKOIL Brent crude oil cost 50.52. After 15 minutes, the price dropped to 50.32, you make the decision to close the deal. Your losses will 50,52-50,32 = 0.20, ie 20 points = $20.
Counting the profit or loss on the transaction, remember that oil is always traded in lots of 100 barrels. This means that every change in oil quotes 1 point equals $1 for each lot. 5 lots - $5, 10 lots - $10, etc.
Summary. Knowledge of oil quotations useful to every trader - and to trade its own oil, and as a tool for correlation of other assets. Best ea work with different stocks and help you to automate the process. It is also important to remember that the gains from trade is highly dependent on the chosen broker!
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