Oil Prices Futures Traders over the last few hours could have made a fortune with the 2% drop in oil prices. Futures traders with just a small amount of capital have the advantage of leverage. Leverage of 100:1 which most brokers provide enables a trader to magnify a 1% oil price move to yield a 100% profit. Thus a 2% move would give a successful trader a 200% increase in their trading capital. Oil prices move on average 1% daily - which can facilitate a trader doubling their money daily.
Consider the case of a trader starting with just $1,000 of capital and compounding it by reinvesting profits. Once a trader's capital is doubled just 10 times the resultant sum can be astronomical. Try the math exercise of starting with $1,000 and double it once. It becomes $2,000/ Doubling the capital again it becomes $4,000. Continue the exercise for 10 or more times. Then consider whether it is worth the effort to learn how to trade forex and oil.
( How did you do with the math exercise?) After 10 doublings your initial $1,000 should have turned into over $1million). How quickly would you like to commence trading for a living? A word of warning - "First learn as much as you can before trading with real money. Most traders who dive in without adequate preparation fail. In order not to be an early casualty start learning forex trading and progress to Oil Prices Futures Trading. Also make sure to get hold of the best traders software there is at present - TradeMiner!
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