What is US crude oil?
Crude oil is one of the most actively traded commodities in the world as the demand for oil reaches tens of millions of barrels per day. The high demand for this commodity is based on its extensive usage in different industries and for various purposes. The crude oil is extracted from oil wells which are located underground or deposits located under the sea bed. The crude oil is refined into fuel for vehicles, into heating oil and for production of chemical products which are used for the manufacturing of other products.
There are a few basic types of crude oil: Brent Crude Oil and West Texas Intermediate Crude Oil or WTI are the most common. The WTI oil is also referred to as the "light sweet" because it contains low levels of sulphur, it is light-weighted and it represents the primary benchmark for setting oil prices in the Americas. The US crude oil trading can be executed on commodity exchanges such as the well-known NYMEX with a ticker symbol CL for WTI and the Intercontinental Exchange (ICE) where it is traded under the WTI ticker. The spot price quoted for WTI is per barrel of crude oil.
US crude oil price changes
Crude oil market represents one of the most liquid markets in the world which attracts a vast number of investors and traders, and has been through some significant peaks and troughs. The US crude oil reached a two-year high on 26th October 2021 at a closing value of $83.74, and experienced lows of $14.64 dollars on 27th of April, 2020. Important factors affecting the value of US crude oil are the supply and demand for this commodity. Market sentiment is another factor which can affect crude oil value. However, it can be said that traders can determine profitable trading positions if they carefully evaluate the factors which impact the crude oil price.
How to invest in US crude oil
There are numerous methods to invest in crude oil. One might be to go on the Intercontinental Exchange and buy or sell US crude oil futures. It is also possible to invest in US crude oil using derivative instruments such as options. With a call or put option, you won't have any obligation for the delivery of the reference asset, but you will have the right to decide whether or not to execute the option. However, such methods can be time-consuming and are more suited to experienced traders.
An alternative instrument is the tokenised commodities option offered on the Dzengi.com leveraged trading platform. The value of tokenised assets are linked to the value of an underlying asset or commodity, and any change to asset's price is reflected in the value of the tokenised asset. Tokenised assets are based on blockchain technology, which is rooted in distributed ledger technology, enabling easier data storage and record keeping. The tokenisation of real tradable assets increases the efficiency of trading by lowering transaction costs and improving execution speed, and the price can be monitored on the US crude oil price live chart.
You can execute your trading with tokenised assets using the leverage offered by Dzengi.com. It should be noted that the leverage is quite high since the required margin for tokenised US crude oil is only 0.5 per cent, which transfers to leverage of 1:200. It would mean that when traders plan to buy tokenised US crude oil worth $10,000 they need to have only 0.5 per cent available capital or $50.
Tokenised US crude oil trading guide
Trading tokenised US crude oil is easy and, in many ways, the process is similar to trading other types of securities. There are a few basic steps:
Step 1: visit the Dzengi.com trading platform and open an account by completing the two-factor authentication security process.
Step 2: choose how much you want to deposit into your account. It is possible to trade with either crypto or with fiat currency.
Step 3: calculate the value of the position you want to open, or you can calculate the size of the position based on your available capital and the percentage margin. For example, a position of $10,000 would require that you have $50 of available capital when you trade tokenised US crude oil 1 : 200 (0.5%).
Step 4: positions are opened using the same approach in place at other investment platforms - i.e. taking a long position if a US crude oil price increase is anticipated, or shorting if there is an expected decline in the US crude oil price value. The handy US crude oil price chart could be used to monitor price movement.
Step 5: Dzengi.com links the open the trading positions between its clients and all unpaired buy or sell orders that are hedged with Capital.com, LMAX Digital or, if needed, with Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
Step 6: you may also consider placing a take profits order or initiate a stop loss order.
Trade tokenised US crude oil with Dzengi.com
US crude oil trading at Dzengi.com tokenised assets exchange has a number of advantages. Tokenised assets are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
Trade tokenised US crude oil with a tight market spread, and benefit from maker rebates and competitive taker fees.
Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders and mitigate any losses with negative balance protection.
Instant order execution
Dzengi.com has a scalable and low latency order management system, which can execute 50 million trades per second. It is a high-growth, crypto platform seamlessly linking the booming world of cryptocurrencies with the world of traditional financial assets. Powered by simple, slick and intuitive technology, the platform is designed to enable investors to securely buy, trade and invest in popular cryptocurrencies using both crypto and fiat currencies.
Depending on the regulatory perimeters in different countries Dzengi.com offers different products around digital assets. To help investors trade with confidence, the platform is fitted with robust risk management controls, transparent pricing and extensive financial education content.
Dzengi Com US LLC is registered with the Financial Crimes Enforcement Network as a Money Services Business. Its parent entity, Dzengi Com Limited is licensed by the Gibraltar Financial Services Commission as a Distributed Ledger Technology (DLT) Provider. The company has offices located in the US, Belarus, Gibraltar and Ukraine.