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Where to invest in oil?

Where and how to invest in oil?

Through the investment platform DIF Freedom  there are many ways to invest in oil. Let's start with the instrument that is associated with the least investment risk and allows for long-term investment in your investment portfolio, namely stock.

Investing in oil through stocks

On the DIF Freedom platform, at the top of the main menu select the item: Trafficking and then: Instrument explorer. Here we enter the word "OIL" and then you will see a list of stock exchanges where oil related stocks are available.

Click on the selected stock exchange and receive a list of oil related stocks. Right click on the selected action and open the dialog box.

The commission from the purchase of shares on the US stock exchanges is 2 prices from a single share there is a minimum fee of $ 15. This commission is taken both at the purchase and at the subsequent sale. After the executed order we see our shares on the account. We can place a stop loss and take profit (LIMIT) order for this investment.

Stop loss - This is an automated order that will be executed when our share price falls to a predetermined level. This is a stop for losses.

Take profit (LIMIT) - is an automatic order that will be executed when the specified level of risk is reached.

ETF funds

ETF funds are investment funds whose units are listed on the stock exchange. Through a brokerage account and investment platform, we buy ETF funds directly on the exchange.

Before investing in ETF funds, be sure to read the information available on your issuer's website to find out how it works, what it is investing in. Thus, we distinguish two basic types of funds investing in oil: equity investment funds, futures investment funds.

Investments in funds investing in futures contracts should be considered, as they are investing in futures contracts, they contain contango.

A sensible proposal is to invest in a fund investing in a basket of oil related stocks.

Placing an order / purchasing ETF fund units:

On the DIF Freedom platform, in the top main menu, select the item: Trafficking and then: Instrument explorer. Here we enter the word `` crude`. We get the result: Under `` Actions`` we see `` ETF`` click on the ETF and we get a list of funds related to crude oil. Right click on the selected fund and open the order dialog box.

The commission on the acquisition of ETFs is 2 cents per unit, with a minimum fee of $ 15.

In summary: investing in stocks and investing in ETFs investing in stocks has the following advantages: I do not have contango, no leverage is a suitable type of instrument for long-term investment.


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