Trading Brent Crude Oil Futures

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Trading futures or oil futures is a popular option for investing in crude oil. Futures contracts are a legal agreement to buy or sell a specific asset at a specific price at a specific future time.
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From a trader's perspective, the trader has no interest in receiving the asset itself, which is barrels of oil. Rather, he simply trades the futures contract against the financial asset itself in order to profit from price differences.

For example, oil futures contracts are traded at $55 per barrel. If the trader believes that the price of oil will rise before the expiration date of the contract, he has the right to buy the contract with the expectation of closing the contract at a higher price. If the price of oil rises to $58 before the expiration date of the contract or the trader wants to close it at a specific time, in this case the trader has made a profit of $3 per barrel, worth $3,000 per futures contract, since the futures contract usually contains a thousand barrels of crude oil, but if the price drops to $54, the trader loses $1,000.

It is important to note that trading oil futures does not require the trader to invest the full value of the contract. Rather, an initial margin can be paid, which is a specific percentage of the total value of the amount, and this is often done using leverage.