Energies such as petroleum and crude oil were first used more than 4,000 years ago in the construction of the walls and towers of Babylon. Ancient groups in China were the first to drill oil wells, the crude oil was burned to evaporate brine and produce salt. The industry grew slowly in the 1800's but the demand for crude oil exponentially increased with the introduction of the combustible engine and that demand is what largely sustains the oil industry today.
How do you trade Energies?
Εnergies are traded in Lots where the minimum price fluctuation is measured in Pips/Ticks depending on the chosen trading method. Energies are traded in the Futures market as well as the CFD (Contracts For Difference) market.
Trading Energies in the Futures market
The Futures market is a worldwide market for all types of Energies, financial instruments and commodities including manufactured goods and agricultural products. The primary function of the futures markets is to provide a liquid centralized market to set prices. A futures contract is a contract to buy or sell specific quantities of a financial instrument at a specified price with delivery set at a specified time in the future.
Trading Energies in the CFD market
In finance, a contract for difference (or CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. (If the difference is negative, then the buyer pays instead to the seller.) In effect CFDs are financial derivatives that allow investors to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.