{"id":51214,"date":"2026-03-13T22:38:56","date_gmt":"2026-03-13T22:38:56","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/you-can-trade-oil-futures-what-to-know-before-you-start\/"},"modified":"2026-03-13T22:38:56","modified_gmt":"2026-03-13T22:38:56","slug":"you-can-trade-oil-futures-what-to-know-before-you-start","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/you-can-trade-oil-futures-what-to-know-before-you-start\/","title":{"rendered":"You can trade oil futures. What to know before you start."},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Investors interested in adding alternative investments to their portfolios may be considering oil futures. It checks all the boxes for an aggressive investor: Oil futures are speculative, can be highly volatile, and involve margin loans that amplify profits (and losses).<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Interested in investing in oil futures? Here&#8217;s what you&#8217;ll want to know.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><em>Read more: <\/em><em>Oil is trading like a meme stock \u2014 here\u2019s why it isn\u2019t one<\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Investing in oil futures is buying or selling a contract on the predetermined future price of 1,000, 500, or 100 barrels of oil. The contracts are typically traded on West Texas Intermediate crude oil (CL=F), the U.S. market standard, and Brent Crude (BZ=F), an international oil benchmark.<!-- HTML_TAG_END --><\/p>\n<p> <iframe loading=\"lazy\" title=\"CDS Widget\" src=\"https:\/\/templates.cds.yahoo.com\/remote\/widget?campaignId=4ec2331a-fbb0-4230-81e2-d38f75a95135&amp;lineItemId=7198ba35-cdf3-466f-bde1-5c14788716b5&amp;contentId=5bbfdd17-a912-413b-8cae-647abbf602f4&amp;viewId=1-In1_q9wDId_gzrmUC9KQ&amp;providerId=yahoo_personal_finance_397&amp;site=finance&amp;spaceId=1183300100&amp;commerceSiteId=us-finance-pnr&amp;url=https%3A%2F%2Ffinance.yahoo.com%2Fpersonal-finance%2Finvesting%2Farticle%2Fyou-can-trade-oil-futures-what-to-know-before-you-start-141230605.html\" scrolling=\"no\" height=\"480\" data-testid=\"iframe-with-resizer\" class=\"yf-16wd5dt\"><\/iframe> <\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Many investment brokerages don&#8217;t offer futures trading, but Charles Schwab, Robinhood, Coinbase, E-Trade, Interactive Brokers, NinjaTrader, TradeStation, and Webull do.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->To be approved for commodities trading, brokerages typically require:<!-- HTML_TAG_END --><\/p>\n<ul class=\"yf-1p2hw41\">\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->A minimum account value as required by the brokerage<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->An account with margin approval (approval to borrow money from the brokerage)<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->An appropriate investor risk profile form on file<!-- HTML_TAG_END --><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Traders may use oil futures to hedge other petroleum-related investments, such as oil, gas, and petroleum exploration company stocks.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->How oil futures trading works:<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><em>You <\/em><strong><em>buy a futures contract<\/em><\/strong><em> if you expect <\/em><strong><em>oil prices to rise.\u00a0<\/em><\/strong><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><em>You <\/em><strong><em>sell a contract<\/em><\/strong><em> if you believe <\/em><strong><em>oil prices will fall<\/em><\/strong><em>.<\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->One excellent way to determine if futures trading is right for you is to use a trading simulator. Before you commit real cash to the oil futures market, you can test out your ideas in a simulated trading environment with live market data.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->As you gain experience in the practice of trading futures, without risking any capital, you can build confidence in your strategies and then be ready to put money on the line.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><em>Read more: <\/em><em>5 ways oil prices over $100 a barrel could hit your wallet<\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Futures trading often uses leverage through margin accounts. That amplifies a position while using less up-front cash. You make a good-faith deposit into your account, from which the 2% to 12% of the contract value is deducted. A minimum margin balance must be maintained, known as a &#8220;margin call.&#8221;<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Charles Schwab offers an example:<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->&#8220;If a trader expects crude oil prices to move higher, they might buy five Micro WTI Crude Oil contracts at $65 per barrel, putting up at least $2,550 in initial margin (the good faith deposit) to establish a position in a futures contract with a notional value of $32,500.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->&#8220;If oil rises to $66, the notional value of the futures position would gain $500 ($1 x 100 barrels x 5 contracts) to $33,000. If the trader sold those five contracts at $66, they&#8217;d pocket the $500 gain minus transaction costs.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->&#8220;But if the price of oil falls, this same leverage would work against the trader, magnifying the loss.&#8221;<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The Commodity Futures Trading Commission warns investors to approach the market with caution.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->&#8220;Speculating in commodity futures and options is a volatile, complex, and risky venture that is rarely suitable for individual investors or &#8216;retail customers,'&#8221; the CFTC noted in an educational piece. &#8220;Many individuals lose all of their money, and can be required to pay more than they invested initially.&#8221;<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><em>Read more: <\/em><em>What\u2019s the Strategic Petroleum Reserve, and can it help lower gas prices?<\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->If you&#8217;re not quite ready to jump into oil futures contracts just yet, other options are available:<!-- HTML_TAG_END --><\/p>\n<ul class=\"yf-1p2hw41\">\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><strong>Oil exchange-traded funds<\/strong>: ETFs such as USO (USO), BRNT (BRNT.MI) (BRNTN.MX), DBO (DBO), and OILK (OILK) track the prices of oil. Expense ratios run from 0.60% to 1.43% or more.<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1p2hw41\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><strong>Energy stocks<\/strong>: Oil company stocks such as ConocoPhillips (COP), Occidental Petroleum (OXY), and Texas Pacific (TPL) can offer exposure to the sector.<!-- HTML_TAG_END --><\/p>\n<\/li>\n<\/ul><\/div>\n<p><br \/>\n<br \/><a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors interested in adding alternative investments to their portfolios may be considering oil futures. It checks all the boxes for an aggressive investor: Oil futures are speculative, can be highly volatile, and involve margin loans that amplify profits (and losses). Interested in investing in oil futures? Here&#8217;s what you&#8217;ll want to know. Read more: Oil [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":51215,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10],"tags":[3773,1165,5236,1707,216,5237],"class_list":["post-51214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-brent-crude","tag-charles-schwab","tag-commodities-trading","tag-oil-futures","tag-oil-prices","tag-trading-futures"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/diyhaven858.wasmer.app\/wp-content\/uploads\/2026\/03\/4812b12c-6676-4fc4-9867-6d2cd736f105.jpeg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/51214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/comments?post=51214"}],"version-history":[{"count":0,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/51214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media\/51215"}],"wp:attachment":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media?parent=51214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/categories?post=51214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/tags?post=51214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}