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How to: trade Energy markets

Crude, natural gas and gasoline are never far from the headlines. Energy commodities are some of the most important markets in the world. They set the price for our everyday consumption of the massive volume of fuel required to live and run a business today. Energy CFDs allow traders around the globe the ability to trade crude oil, which is the most liquid and commonly traded commodity. Here’s a video of how you can trade Energy markets with Pepperstone as CFDs.

The appeal of energy CFDs

Spot crude trading is out of reach for the majority of traders, but through SpotCrude and SpotBrentCFDs, traders can bypass the requirement of dealing with a physical commodity. Instead, they can speculate on the future market movements of energy assets, with the flexibility of leverage and without the interest and holding costs that are priced into crude futures markets. Traders will pay an overnight funding charge though if they hold past the cut off time.

Energy CFDs: Advantages

What are the advantages of energy CFDs?

  • Trade the headlines - As macro events can have a direct impact on global markets, clients can trade news events and how it affects energy markets nearly 24 hours a day, 5 days a week.
  • A great market for all trading strategies - trend-following, momentum and mean reversion among others. For those who see advantages in big movement in their trading, then energy often has it in spades
  • Increased flexibility – traders can trade long or short, meaning they can express a view on energy commodities if the price is rising or falling.
  • Regulation - Clients trading with a regulated CFD broker are offered specific investor protections according to local regulatory requirements.
  • Reduced drag - Transaction costs can wear on your portfolio. Pepperstone offers a competitive cost structure to trade CFDs.

    With Pepperstone, clients can express a view - either long or short - on the world’s most popular energy commodities, including Spot Crude, Spot Brent, Natural Gas, and Gasoline- as well as a range of energy related ETFs and energy equity CFDs.

    Put your energy to good use - open a demo account and try energy CFD trading for yourself.

    Learn more about trading CFDS

    Here at Pepperstone, our customers love the product range along with the low cost to trade and the fact so many markets are open around the clock. Interested? Watch the more videos to learn or speak to our team about whether CFDs are right for you.