The best way to trade oil all depends on your individual goals, style and strategy. There are numerous ways to take your position on oil prices, and each brings its own unique benefits and drawbacks.
Most global oil trading takes place on futures markets. These financial derivatives facilitate the buying and selling of oil using contracts in which you trade oil at a set price on a set future date.
While retail traders can participate in the oil futures market, many choose to trade on futures prices using CFDs and spread bets instead. These products enable you to take a position on oil markets without ever owning the underlying asset itself.
Learn more about how CFDs and spread betting work.