Crude Oil Trading Accounts
Standard Oil Account and Micro Oil Trading Account
In recent years retail oil trading has grown hugely in popularity & demand for different types of crude oil accounts has grown. There are many different crude oil trading account types available to any oil trader who wants to invest in the online oil market - Oil Account Meaning.
The oil market is a highly oil trading leveraged market for speculating on oil price valuations. Oil traders can purchase large amounts of oil trading units using leverage - Oil Trading Leverage is what makes oil trading attractive to many online oil traders - with oil trading leverage a trader can make more profits or losses because they use less of their capital and borrow the rest.
There are different types of crude oil trading accounts available to help investors better manage their oil trading account capital as well as their oil trade transactions.
How a Real Oil Trading Account Looks Like
It is therefore important that the traders consider what they want to get out of their oil trading, before deciding on the crude oil trading account type to open.
Below is a comparison of the two types of crude oil trading accounts commonly used to trade oil. The crude oil trading account types review below explains the different features of each of the types of oil trading accounts.
1. Standard Oil Accounts Discussed
Oil Account Meaning - Standard Crude Oil Trading Account. A Standard Oil Trading Account is denominated in US Dollars and oil trade transactions are placed using standard lots. One lot is also referred to as a one contract. Minimum opening capital - at-least $10,000 USD.
1 contract refers to the minimum size of a single oil trade transaction. This oil trading account option is the most suitable for oil traders with enough capital to invest in crude oil trading - this oil account option requires $10,000 to $50,000 dollars in starting capital, For this standard crude oil trading account the trader will not be undercapitalized and with good oil trading money management guidelines and oil trading money management strategies, this standard oil trading account option has the best chance for profitability because it is not undercapitalized. Under capitalization is what makes most traders in oil trading not profitable.
It isn't recommended to open a standard oil trading account unless you have an account balance of at between $10,000 minimum & $50,000.
Professional Money Managers recommend $50,000 Dollars minimum to open this standard crude oil account & only opening trades with only 2% of the trading capital you have in your crude oil account. However, most online oil brokers will still open this standard crude oil trading account for you if you have more than $10,000.
With oil trading leverage of 100:1, you will borrow from your oil broker (with oil leverage of 100:1, your oil broker gives you $100 dollars for every $1 dollar that you have in your crude oil trading account, therefore if you have $1,000, the broker will give you $100 dollars of oil leverage for every $1 dollar you've, meaning after oil leverage you will have $1,000*100=$100,000 which you can then use to trade oil).
2. Micro Oil Account Discussed
Oil Account Meaning - Micro Oil Trading Account. Micro Oil Trading Accounts use lot sizes of only equivalent one-hundredth that of a oil trading standard lot. These Micro crude oil trading accounts are often appropriate for oil traders without a lot of oil trading capital and can sometimes be opened with only a $5 minimum balance.
This Micro oil trading account option allows the trader to open trades in micro lots. 1 oil trading micro lot is one-tenth of a oil trading mini lot and one-hundredth of a oil trading standard lot.
This Micro oil trading account option is generally best suited for oil trading account equity balances that are between $1,000 & $5,000
In oil trading, one oil trading standard lot is the standard transaction minimum of oil instrument traded in the crude oil market. But many oil brokers offer fractions of this oil trading standard lot to enable more retail crude oil traders to access the crude oil market. Being able to offer oil trading micro lots reduces the minimum oil trade transaction size thus giving the beginners and also those oil traders without a lot of oil capital to begin trading and get a feel of the crude oil market without investing a lot of oil trading capital.
There are learn oil trading online tutorials that a trader can read even before opening a real crude oil trading account, and to get extra practice in oil trading before opening a real oil trading account a beginner trader should open a practice Oil demo trading practice account with a broker - so as to practice placing oil trade transactions before opening a real crude oil account & investing with real money.
During the oil trading training period using the crude oil trading demo practice account, the beginner trader will learn the key factors needed to succeed in oil trading such as: oil trading education, oil trading money management, oil trading plan and oil trading systems.
The types of oil trading strategies used and the skills required for any of these 2 crude oil trading accounts are essentially the same - those oil trading skills and oil trading strategies required for the Standard oil trading account or Micro oil trading account are the same the only difference to be adjusted are the oil trading money management guidelines for each crude oil trading account type.
