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What are the uses for an oil futures chart?

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Quick Answer

Oil futures charts are used by investors and traders to manage risk by analyzing both the current and historical prices of oil futures, as well as the critical data contained in the oil futures charts themselves. A thoroughly comprehensive oil futures chart is essential to profitably trading in oil futures, because investors and traders must be able to track price movements to make informed decisions about whether to protect or invest in futures as prices fluctuate.

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Oil futures charts display contract information about the NYMEX, ICE and WTI futures markets, including the ticker symbol, contract size, contract length and tick size. Futures charts also provide technical data, such as pivot points, technical indicators and moving averages, that often accompany a recommendation. Candlestick pattern charts help in determining the signal, range and patterns of futures.

There are many different types of oil, each having more than one name. Futures contacts are available for crude oil, gasoline, heating oil, natural gas, coal, and ethanol futures. Light sweet oil is the most actively traded energy derivative on the planet. Brent crude oil prices and futures are the benchmark for the world's crude oil prices. Heating oil futures are generally seasonal, and the ICE futures contract is the largest gasoline petroleum contract on the globe.

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