Crude oil is a natural occurr substance which is found in certain rock formations in the earth. To extract the maximum value from crude oil, it also needs to refined into petroleum . The best known of these is gasoline or petrol.
In the crude oil industry, there are oil names such as Crude Oil and Bonny Light and there are oil types such as light, heavy. Light oil has a low density and viscosity, while heavy oil is of higher density. The world market prefers light largely because it requires less refinement and production time before going to market.
Almost entrie economy of our country depends on this single commodity. Crude oil is core of all daily use products such as petrol, diesel, lpg, mobile oil, candles and even petrolium jelly (vaseline). Initially crude oil is black coloured liquid which is extracted from sea bed in india and mostly imported from international market. After importing or extracting it goes through refinement process whilie refining at different temprature final rpoducts such as spirit, jet fuel, petrol, diesel etc comes out. Mcx crude oil barrel comes in two sizes 100 barrels and 10 barrels.
Like every other commodity, Crude oil is also traded as future contract in MCX. When you buy mega contract of crude oil it contains 100 barrel similarly when you trade in mini lot it contains 10 barrel. So for every single point (1 Pt) change in MCX Crude Oil Price you earn or loose Rs 100 in mega lots and Rs 10 in mini lots.You can trade in as many lots you want, Trading limit is normally capped by leverage given by your broking company. Normally all major brokers give you 20x leverage. Lets try to understand what this leverage means in real world.
If you are an intraday trader and current price of crude oil in MCX is running at 5000/- in current contract. Lets take example of mega lot here.Lets assume:-
Crude can become very rude if traded blindly. This commodity has very high movement in MCX. Crude price has various decieding factors such as inventory data, Oil extracting data, OPEC meeting news. So complete knowledge about technical and fundamentals of crude oil is required for intraday trading in crude oil. At getcommoditytips our team of expert researchers do this heavy lifting part for you and provide you best generated crude oil tips
Mcx trading tips PlansBuy 1 Month At 3000