In this article, you’ll find out how to invest in Brent Oil with Plus500 and you will get to know the several ways to do so.
For example, you can buy futures on Brent Oil with the aim of obtaining a revaluation within a short period of time or alternatively, you can buy futures with the intention of keeping them for a few years so as to take advantage of a long-term gain. And for those who are more interested in actual trading, there is also the possibility to invest in Brent Oil via CFDs.
That’s why in this article, we will analyze the best ways to invest in Brent Oil on Plus500, a broker, who in these long years of experience, has proven to be reliable, professional, and above all, open to all types of users.
You can also read our complete Plus500 guide on our site.
How to Trade Brent Oil on Plus500?
Trading Brent Oil on Plus500 is not difficult. Plus500 is, in fact, the creator of a practical and intuitive interface that is accessible even to those who do not have a great deal of experience in the field.
To start trading, just enter the “Trade” screen, and from there select Brent Oil. As can be seen from the image below, the user is given the opportunity to invest as he sees fit by freely choosing not only the asset, but also the type of online trading operation to be carried out.
At this point, you can choose whether to buy or sell the asset, to trade up or down.
What does it mean to buy Brent Oil on Plus500?
Buying Brent Oil on Plus500 means first of all opening a Long position. This is extremely simple when you consider the fact that you just have to click on the “Buy” button.
Plus500 is a CFD broker, so when you buy a Brent Oil CFD on Plus500 you go to trade up on the value of the underlying instrument listed on the stock exchange.
The CFD does nothing but replicate the trend of the price. So if the trader chooses to open a buying position, the profits will occur in the event that the asset should increase in value.
What does it mean to sell Brent Oil on Plus500?
Selling Brent Oil on Plus500 means opening a Short position with the “Sell” button. In this case, the exact opposite to the one mentioned above is true.
So those who sell a CFD on Brent Oil do so because they are convinced that the price of the reference asset will end up decreasing.
Here, the CFD scrupulously replicates the price trend of the asset to which it refers. So a trader who opens a selling position does so because he believes that the value of the asset will fall.
That’s how you can invest on brent oil with plus500 and produce results with a price fall.
Placing a Brent Oil Trading Order on Plus500
Once you understand how the market works and what it means to buy or sell, you have the necessary basis to proceed with an actual order.
At this stage, we will clarify the main aspects that are part of an investment.
First of all, below you can see the window relating to the details of a buy position on Brent Oil with Plus500.
To trade in this sector, it is not enough to know the meaning of buying and selling because when you go to invest, you will find yourself dealing with other terms and these you should know in order to avoid “surprises” of any kind.
- Contracts: indicates the number of Brent Oil CFDs that you wish to trade.
- Leverage: as the name suggests, it denotes the financial leverage, that is, the instrument that allows you to amplify the value of an investment. For example, a 1: 10 leverage means that an investment of €100 actually shifts a turnover of €1,000.
- Maintenance margin: a value that indicates the actual amount of the investment net of leverage. It is basically the amount of real money that the trader puts at risk from his own pocket.
- Stop Limit: a tool used to establish the maximum profit limit. Once the figure goes beyond the limit imposed, the position is automatically closed. It serves to “secure profits” without running the risk that the trend may change.
- Stop Loss: an instrument very similar to the first one. Once the figure goes beyond the limit imposed, the position is automatically closed. Also here we speak of a tool to protect the trader who invests because it avoids too much loss.
- Guaranteed closure: is not available for all the instruments but when it’s there, it’s very useful! With this function, the trader can close a position when there are strong price fluctuations.
- Buy/Sell: is used to place a buy or sell order.
Note that Plus500 will give you even further details about the traders sentiments to guide you further.
You can start by a demo account on Plus500 in order to visualise all the screenshots in this lesson and check out how intuitive Plus500 is.
How to close a Brent Oil trading position?
We’ve seen how you can open a position on Brent Oil regardless of whether it’s buying or selling. However, you should know that the trader can also close it and to do so, you can use the “close” button located in the main window of the platform (coinciding with the asset on which you are trading).
But exactly when should you close a position? The “Close” button is useful to prevent a loss from worsening further or to ensure a profit by preventing any trend reversal to compromise the gains. The belief, which is often widespread among newbies, that to close a given position, you need to open a position of opposite sign is wrong.
Our comprehensive guide to CFD trading may provide you with even more detailed information and insight to help you trade with confidence.