Crude oil trading platform in South Africa
The oil market has a huge impact on the world economy. It affects the welfare of oil-producing and oil-consuming countries. The market is also useful for investors.
Oil is the most traded commodity in the world. And the contract for the delivery of oil products is one of the most popular trading tools. However, to be successful in trading this asset you need to understand the structure of the oil market, know its structure and many other factors that affect prices.
In addition, the choice of a crude oil trading platform is an important factor in trading. You will agree that even if you know everything about crude oil, bad software can ruin your plans and your strategy. That is why it is important to choose a quality and professional platform.
The ability of the platform to provide easy and reliable communication between buyers and sellers is one of the main factors when choosing a crude oil trading platform in South Africa. The most important features of the platform include communication between sellers and buyers, fast and smooth execution, ease of use, cost-effectiveness, security and reliability, among others.
Platforms vary in the way they connect and operate, as well as in the way they collect and manage information. Security and customer service features, access to different types of accounts and analytical tools are other important criteria traders consider when choosing a platform.
Our platform allows you to trade oil stocks without having to store or handle the product itself. The trading platform acts as an intermediary between the trader and the producer of the commodity. The advantage of using this system is that you will find less danger and therefore more profit. Another advantage is that with this type of trading you can get in and out of trades quickly, which is useful when it comes to making decisions based on fast moving trends.
Thanks to our crude oil trading platform, you can quickly identify market trends and make informed decisions based on charts and technical analysis indicators.
Technical analysis indicators are algorithms that provide you with data on future prices using price data from a certain period of time. There are millions of them and in addition to the existing ones you can create your own indicators, using mathematical calculations. There are dozens of types of indicators on our website and here are the most popular ones.
All indicators can be broadly divided into two main classes:
Trend-tracking indicators. This class contains trend following algorithms. One of the basis of most trend indicators is the moving average line, which has many varieties. Indicators based on this line make it possible to plot a trend and see both its beginning and its end, especially when several moving lines are combined. An example of such indicators:
- Moving averages (Moving Average MA);
- Bollinger Bands;
- Accumulation Swing Index (ASI);
- Andrews Pitchfork Indicator;
- Ishimoku indicator (Ichimoku Kinko Hyo).
Oscillators. They work well in range conditions in the market, i.e. when there is no definite trend. These indicators are plotted in a separate window of the chart and, in most cases, are represented in the form of curves or curves fluctuating in a given range. The most famous oscillators are the stochastic and the relative strength index. Their advantage is that they allow you to see in advance when the price may turn 180 degrees and move from one trend to another (but only in a range!) They also include the following popular indicators:
- Oscillator moving average (OsMA);
- Stochastic Oscillator;
- Relative Strength Index (RSI);
- Mass Index (MI);
- Commodity Channel Index (CCI);
- Moving Average Convergence/Divergence (MACD), etc.
Technical indicators are mainly useful for short-term traders who prefer to work on a short time frame. Investors trading on a longer time frame are not interested in using technical algorithms, as they prefer fundamental analysis. In any case, when developing your strategy and thinking about how best to trade, you should consider both technical and fundamental data.
How to make money trading crude oil in South Africa
Oil is one of the most traded commodities for traders, mainly because of its volatility. This volatility is due to the fact that oil prices fluctuate and often fluctuate from day to day, minute to minute. These prices are influenced by several factors that need to be taken into account, most notably political decisions. This is why you should keep an eye on the economic calendar before deciding to invest in oil in the stock market.
Oil has value because the market needs what is produced from it - fuel and petroleum products.
The main demand for oil is created by the buyers of fuel - industry, power plants, transport. If transportation and production increase, the demand for oil increases and this drives up prices. When industry declines, transportation decreases, and winters are warmer, when power plants do not need to burn much fuel, oil prices go down.
Oil prices are determined by the balance between supply and demand. Many factors influence supply and demand, from the global economic situation to wars and accidents at oil facilities. In addition, prices can fall or fall for reasons that affect investor psychology. For example, because of analysts' forecasts.
Heavy oil products are suitable for industry and power plants while transportation fuels, especially aviation, need only light fractions which can be obtained from some oil grades.
There are dozens of grades of oil from different fields and regions around the world.
The oil grades differ in density, sulphur content and other impurities.
Brent and WTI grades are regarded as benchmarks or marker grades. They are traded on international exchanges and their prices are calculated on the basis of their value. Other grades' prices are calculated on the basis of their value. Brent is a light, low-sulphur oil. It serves as a price standard for Europe and the OPEC countries. 70% of the world's oil supply is priced with Brent. WTI is an oil that is good for petrol and other distillates.
One of the easiest and most popular ways to trade Brent oil is CFDs (contracts for difference). A Contract for Difference (CFD) is a type of contract between a trader and a broker to profit from the price difference between the opening and closing prices.
To make large profits in the oil market using a small amount of your own funds, our crude oil trading platform allows you to trade using leverage.
You do not need to deposit the full amount of the value of the position you want to open. You deposit your own funds as collateral and the broker provides you with additional capital to trade.
This type of leveraged margin trading allows you to make higher profits if the price of an asset moves in your direction. However, there is a risk that if the trade is unsuccessful, you will lose some of your margin.
Investing in quoted crude oil using CFDs has many advantages, for example:
- Direct access to the oil market;
- Ease of use of CFDs: CFDs have been specifically designed for the individual investor and offer a simplified operation;
- The ability to speculate independently of market trends: CFDs allow you to buy or sell oil online. Thus, you can exploit both bullish and bearish market trends;
- Expenses are known in advance: Thanks to the spreads, which are a form of compensation for CFD brokers, you will know in advance what the expenses will be.
If you have any doubts or little experience, try using a demo trading account, this will give you access to trading, but it will eliminate the risk.
How to start crude oil trading in South Africa?
If you are new to the world of commodity exchanges, you need to understand how to open an oil trading account. Without it, you will not be able to buy the asset you want. This is one of the most important things you need to learn if you want to enter the market as an important player.
When it comes to the commodity exchange, there is a lot to learn and understand. And one of the things you want to learn and understand first is the crude oil trading platform. All you need to do in the first step is register for free on our brokerage platform and start learning the market, we will help you with that.
Your account on the platform, is where all your transactions will take place. Through this platform, all transactions are made and all profits and losses will be recorded.
This is where you will actually learn and understand about commodities and how they are traded. You need to learn the different methods of trading and how they affect the value of the commodity. You can learn about the different symbols that are used in commodity trading. Furthermore, you can read about the definition of each symbol and what it means when used. You should be aware that trading platforms may not be easy to use at first. And to learn, you can learn how to open a demo account for trading crude oil.
A demo account is a free demo trading account, almost the same as a real one, but you trade all your trades with virtual money. Your account will automatically be credited with $10,000, you make a profit or lose your deposit with virtual money. Opening a demo account is literally a matter of 2 minutes and is not difficult for a trader. You can improve your trading skills, study the market and instruments, develop your trading strategy in comfortable conditions and without any risks.
Demo account is a kind of training simulator, which allows you to try your skills in trading. You can use it to perform most financial operations.
If you are confident in your abilities, we advise you to open a real trading account. The more so as our minimum deposit is just $10. You can make a big deposit, it all depends on your ambition and experience. Try and you are sure to succeed!
Along with trading, you can enjoy other benefits of our website. These are video-lessons on different exchange trading subjects, a big section with answers to the frequent traders' questions, live chats with other investors, an excellent and convenient mobile application, actual news and quotations and much more. We have gathered in one place everything you need for successful trading, we wish you good luck!