Do you want to invest in oil on Plus500 and don’t know how to do it? Today this guide will give you some advice, starting from the assumption that we are talking about how to invest in oil with Plus500, a CySEC regulated broker that has been active in Europe for several years now.
Plus500 offers the possibility to invest on different markets and assets with the CFD tool. It allows you to invest only on the price of the assets, without having to own them. The investment with CFDs is in fact bidirectional, you have the possibility to position yourself:
- Long (Buy) if you think the price of oil (or the asset you are trading) may rise;
- Short (Sell) if you think the price of oil (or the asset you are trading) may fall.
Obviously, in the case of a purchase, you are not actually buying barrels of oil, since as anticipated you are not buying the asset itself, but you are in fact speculating on its price.
If you want to know more about how CFDs work, we invite you to read our article here >>> Trading with CFDs: what they are, advantages and strategies of CFD trading
Having made the necessary premise, let’s see how to invest with CFDs on oil with Plus500.
How to invest in oil (CFDs) on Plus500
Today we will explain in a few steps how to invest in oil on Plus500 and, as we have already anticipated, the tool used is CFDs.
First of all you need to open an account on Plus500, whether it is demo or real and you can do it from here:
Then you have to reach the Plus500 webtrader platform, or you can login from the Plus500 app on your smartphone or tablet.
Finally, in the menu on the left, you have to click on “Oil” or search for Oil among the “All Commodities”; we show you an exhaustive image in order to explain better:
As you can see below you have a customizable oil chart, while in the center you find the oil prices. Considering the fact that this article was written on October 19, 2020 you will have certain quotes available, which may differ over time.
Consider this image and, in general, this articl ase an example on how to invest with CFDs on oil with Plus500. All this takes place with a demo account, without investing real money.
Let’s say we want to buy (by positioning ourselves long), then press on Buy and this screen will appear:
As you can see we have also set the number of barrels we want to buy with CFDs (so there will be no possession), close at profit (take profit) and close at loss (stop loss), so we don’t have to close the position manually, but it will close automatically when the price of oil reaches those positions.
Remember that, if you want to close it manually, you can do it whenever you want, unless the position closes automatically first.
Once you click on Buy, you will be able to find your position in the “Open Positions” panel on the left, as we can see in the next image:
From here you can monitor your position and if you want you can close it by clicking on “X Close“.
What oil prices are available on Plus500?
You must know that there is more than one oil price. In Plus500, for example, you can find:
- Oil (next month)
- Oil- December 2020
- Oil- January 2021
- Oil- February 2021
This is the price of oil futures with delivery in certain months. In the following months, you will find December 2020, January 2021 and so on.
What we have talked about so far is WTI Oil, an acronym for West Texas Intermediate, or American crude.
Another very important oil price is Brent, the black gold extracted from the Northern Sea and which, in fact, we Europeans are most interested in.
On Plus500 you can also negotiate the quotation of Brent Oil.
When to start trading on oil on Plus500?
You can do it whenever you want, as already anticipated you need an account on Plus500, which can be both demo and real.
In the first case you will not have to deposit anything, the service is in fact free and the funds you will find in the demo account are virtual, as are the gains and losses.
With the demo account you can get to know the Plus500 broker for free and also experiment your strategies on the financial markets, not just oil.
Knowing the CFDs is an important step that all traders should take before investing real money.
If you want to start investing with real money on Plus500, you can also do it immediately, by depositing € 100, which you can still spend on Plus500, so you can take advantage of the Plus500 platform for free.
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