There are numerous methods of trading oil. Futures is the method most commonly used and the most popular. While futures are a pure oil play, there are also drawbacks to trading oil futures. One of them is when you buy and hold oil you pay the carrying charges priced into the oil futures, where most investments have some sort of positive yield. When trading currencies you can earn the yield when doing an oil play and also do it in a low cost, highly liquid market. Take a look at this chart for a comparison.
Posted: February 2nd, 2007 under Forex Trading, Oil.
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