Investing-in-Oil

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Investing in Oil

Black gold, Texas tea. You know the song and you want to be an oil tycoon himself, or at least have oil investments as part of a trading strategy. However, stocking up on barrels of oil in my garage is not only an inefficient way to stabilize your portfolio, but a fire hazard as well. Is an alternative to investing in oil going to the neighborhood gas station. Investing a simple way to expose the investment strategy of price and performance for oil, without actually owning the oil itself. Oil ETF is either oil company stocks or futures and derivative contracts to track the price of oil, or in some cases, the oil-related indices. Oil Well Drilling For example, one of most popular oil ETF USO, United States Oil ETF. In the case of this particular oil ETF, you do not actually own the oil fund composed of futures, options and forward contracts of different oils, gases, and petroleum-based fuels. So you will have exposure to the price of oil, but you do not have a real oil rig gushing back yard.

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