Oil is the lifeblood of the industrialised nations and has become the world's most important source of energy since the mid-1950s. Its products underpin modern society, mainly supplying energy to power industry, heat homes and provide fuel for vehicles and aeroplanes to carry goods and people all over the world.
Oil is also one of the most popularly traded commodities in the markets, due, in part, to price fluctuations depending on supply, and global economic factors. PrimeXBT award-winning platform offers a wide range of trading tools and strategies to make successful trades in the Oil market.
In order to make bigger profits with less capital in the Oil market, there is the opportunity on PrimeXBT to trade on margin. When you want to trade Oil, you don’t have to deposit the full amount of position value, instead you only use margin as insurance while PrimeXBT will provide you with additional capital to trade.
This leveraged margin trade then allows you to receive higher profits if the position goes the right way. However, the risk is that if the trade is unsuccessful the losses can be magnified too.
For example, If a trader takes a long position of $2,000 on the Oil and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.
Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.