After gold if there is any other lucrative trade then it is black gold i.e Crude oil. For active day traders it is an all time interesting and excellent market. There is no dearth of reasons to make crude oil as preferred trade on day traders’ radar.
To start with volume is a key reason. Average trading volumes are approximately 300,000 contracts per day. Liquidity is considered as the other name for crude. All the broker houses consider Crude oil as to be a liquid trading market, but not as liquid as others such as the eMini SP .Traders should know that slippage, getting filled at a price other that the desired price is a more likely in less liquid markets. Traders should be prepared to experience some degree of slippage in this market. So, we advice you to understand this factor before jumping on to crude oil trading tips to book profit.
Volatility is the other important factor that makes crude so desirable. The market keeps on swinging and oscillating. Well volatility is the measure of distance (in either direction) that a market will move over a given period of time. Therefore markets with higher volatility are preferred by day traders.
The other The point value for the symbol CL, crude oil is $100 and it trades in increments of 1/100. That means that the smallest price move is $.01 and has a dollar value of $10.For each 1 cent move in the price of the contract the dollar value will change by $10.
These are all important factors which one has to bear in mind while trading crude.
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