Crude oil is among the best commodities on which to trade future contracts. The crude oil market is active and is well known around the world. Prices of oil fluctuate with the slightest news about prices, which makes it a favorite swing for day traders looking for an edge.

The volatile crude oil trading environment provides solid opportunities for trading, for both day traders and long-term traders. However, you may lose a lot of money if you’re on the wrong side of price movements. To avoid this, you should first understand crude oil trading tips and what causes oil price movements.

Moreover, crude oil is among the most actively traded commodities today. Oil’s price affects the price of many other commodities, including natural gas and gasoline. Nonetheless, the ripple effect of crude oil prices has a significant impact on stocks, bonds and currencies prices around the world.