UFX Bank, a leading online forex broker, has recently announced the launch of a new forex pair Oil/USD, which will allow traders to trade Oil against the USD at the click of a mouse.
UFX Bank is already offering instant execution on trades across five of the major currency pairs and gold & silver against the dollar and is now offering the ability to trade Oil against the dollar.
Oil has always played a very crucial part in any trader's portfolio. There are many ways of investing in oil, including through the actual funding of oil exploration, funding through ETF's and mutual funds. These investment vehicles rely heavily on the performance of oil, through both speculation and supply & demand. This makes it a very risky business. Trading oil against the dollar however, means that the trader never owns the underlying asset but instead trades on the price movement. The trader, then, can profit whether the oil price rises or falls and can also take advantage of a volatile market movement.
UFX Bank's CMO, Michael Laurence is already seeing just how ready the market is for the trading of commodities against a major currency, "many people would like to get more involved in commodity trading without having the risk involved in buying that commodity, Forex trading offers the perfect tool for these traders to get more involved with this financial vehicle."
"We have realized that offering a clear, simple trading interface along with full technical charts means that executing an oil/USD trade could not be easier. We have had nothing but positive feedback from our traders since we introduced this new pair."