Custom Search

Sunday, May 18, 2008

Cheaper and safer way to trade oil

As oil rises higher and higher, many people are pointing to the issue that a bubble is created. Is there really a bubble? Or is oil high price a reflection of its tight supply?

In my view, high oil price is just a reflection of its tight supply. And there are 4 main factors pointing that oil price is going to move higher:

1) Growth in Emerging Economies --> Rising Oil Consumption --> Higher oil price

2) OPEC --> Government depend on oil income --> Cartel restricts supply --> Higher Oil price

3) Geopolitical Issues --> Cause disruption / thread of oil production --> Lower global spare capacity --> Higher Oil price

4) Peak Oil Theory --> Declining Oil production --> Less Supply --> Higher oil price


I believe oil price is going maintain its uptrend in the mid-term. I'm predicting oil price to reach $250 in 2 years' time.

Many of my friends and colleagues frown and complain whenever they read and hear of oil price rising to a new high. Think about it from another point of view, it is a great opportunity to make money!!!

The most direct way is to tap on rising oil price is to buy oil futures. But the contract size of crude oil trading at Nymex is pretty huge, man-on-the-street will find it harder to stomach the risk. For the big oil contract, $1 movement represents US$1000 in your profit & loss. As for the mini contract, $1 movement represents US$500, still quite high for a normal employee.

ForexYard's platform allows their customers to trade oil based on contract size of only 100 barrel. This means that $1 movement only represents US$100. So if you wrong $5 on the oil, your P&L is only down US$500. For the same situation, if you trade mini oil future, your P&L will be down USD2500 (possibly 1 month's salary gone).

And it charges no commission.
I HATE to pay commission to brokers who do not add any value. I think this contract size is pretty affordable, and risk level is comfortable to most people.

Click on the logo below to open a trading account with ForexYard. High oil price is not a problem, it is a great money-making opportunity. Next time when your friends and colleagues are complaining about high oil price, you will be secretly laughing away.

石油价格一直在上升,许多专家预测过不久,石油就会升到200美元。

最直接塔石油价上升的方式是购买石油期货。但合约规模的原油在纽约商业交易所的交易是相当巨大的;1美元的运动代表1000美元,正常人不能沉受这种风险。

现在有一个系统允许他们的客户,合约规模要小得多,1美元的运动代表100美元而已。

你可以试用演示帐户,不收费。式看看您是否是个石油专家的料。

点击链接,然后按一下标志内,以开立一个模拟帐户。

alt="http://www.forexyard.com/banner_images/210.jpg?zone_id=1624" border="0" />

No comments: