Oil options contracts offer enhanced levels of flexibility when it comes to gaining exposure to the oil markets. Although commonly used by international institutions and oil companies to hedge existing positions, the same principles can be leveraged by retail investors.
Oil futures are extremely useful for shorter-term traders that wish to capitalize on price swings in the oil markets. Oil futures markets track the underlying price of crude oil closely and are one of the most liquid markets in the world.
Oil investments may have once been dominated by the wealthy oil barons and moguls, but those times are long gone. There are now a multitude of options for the investor interested in this key commodity.