What Are Oil Futures And How Do They Work(4)

Futures trading in oil is a way of planning future trades with the goal of making a profitable trade.

In the present time, the investor simply has to look at the price he paid for an oil commodity purchase, and compare it to the current market price.

If the market price is higher than the sales price, he can make a profit by selling.

If the market price is lower than the original purchase price, he can hold on to the shares, or sell them for a loss.

If oil trading prices are unfavorable now, oil futures trading is a way of setting up a trade to occur at a later date,

in the hope that the market will be more profitable on that future date.



By BIG Mike