How to Open A Oil Trading Account

This learn oil guide will show traders how to set up their account so that they can begin to trade oil. Before opening a oil trading account there are various factors that traders should consider before taking this step.

To open a crude oil trading account, traders need to find an online crude oil broker and then they can setup their trading account with the broker that they choose. Once a trader opens this crude oil trading account the trader will then use it to place trades in online oil market & the profits and losses that they make when trading will be accounted for in this crude oil trading account.

A trader will need to consider the following factors when opening a oil trading account:

Regulation of Oil Trading Broker

Before opening a oil trading account traders must first know that they should only choose to trade with a regulated crude oil broker. In oil trading there are hundreds of oil brokers, some are regulated and other which are not. A trader must do due diligence when selecting a broker and check the regulation license details of the broker they want to trade with. Remember some brokers which are not regulated will write an tutorial on their oil trading website about oil trading regulation and link to this article - if a trader is not careful they will be tricked into thinking that the broker is regulated, make sure to check the license details of the broker and you can also confirm these details with the regulatory authority regulating the broker.

Oil Trading Leverage

Traders should consider the oil trading leverage offered by the broker when it comes to opening & accounts. With oil trading leverage a trader controls a large amount of capital while using little of their capital. Oil Trading Leverage is one of the reasons why a oil trading is very popular because traders can make a lot of profit from oil trading using little of their money.

A trader should therefore consider the oil trading leverage given by a broker some brokers give 100:1 & others as high as 400:1, with oil trading leverage 400:1 a trader who deposits $1,000 can borrow $400 for every $1 that they have & therefore the trader using this oil trading leverage will control $400,000 which they can use to open trades with.

Stop Out Level

This is where a broker will close all the trades of a trader if the traders make losses beyond a certain level. The best brokers will implement their stop out level at 20 % and at this level there is minimum chance of a oil trader’s transaction getting closed. However, there are oil brokers who are not very straight and these brokers will set the stop out at 100 % and with this level the likelihood of the trader’s transaction getting closed or stopped out are very high. A trader should make sure they open an account with a broker setting the stop out at 20 %.