Oil VFS > Products > Oil

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Trade Online on Spot Gold and Spot Silver

With VFS, you can trade on the price movement of oil similar to forex. All you need to know is the symbol for the product you want to trade and the contract size. VFS offers two contracts mentioned below:

  • US LS Crude (US Oil)
  • UK Crude (Brent)

Who trades Oil and why?

Trading in petroleum products spans many industries, and as such, is affected by both high-level geopolitical factors, as well as the trading activities of traders. Players in the global oil trade range from entire economies to traders on exchanges. The factors that may influence the price of oil are similar to that of a currency pair, in that they are affected by market-forces. These can be political, financial, or even weather-related.


How it Works?

Oil prices are quoted internationally in US dollars per barrel. A quote of 55.66 for BCO/USD means that 1 barrel of Brent Crude oil is worth $55.66.

Trading oil – using Brent Oil as an example:

A typical quote you might receive for Brent Crude is 55.66/71. This means that you could sell one or more lots of BCO/USD at 55.66, or buy at 55.71. The spread you would pay in this example is the difference between the bid and the ask prices (55.71 – 55.66) = 0.05.The size of the trade you place will determine the amount of profit or loss generated by a price movement. At 1 lot, the smallest price change possible (0.01) is equivalent to $1.00. Let’s look at some examples:

Scenario A:

You buy 1 lot of BCO/USD (Brent Crude) at 55.66. A few minutes later, the bid (or sell) price has risen to 56.01, and you decide to exit your trade. You bought 1 lot at 55.66 and sold at 56.01, making 35 pips in the process (56.01 – 55.66). Profit on your trade is calculated as 35 pips, at $1 per pip = $35.00

Scenario B:

You buy 1 lot of BCO/USD at 55.66. A few minutes later, the bid (or sell) price has weakened to 55.31 and you decide to close your position to cut your loss. You bought 1 lot at 55.66, and sold at 55.31, a difference of 35 pips. Loss on your trade is calculated as 35 pips, at $1.00 per pip = $35.00