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Energy trading

Invest in the world's most popular energy commodities
TopTradeGroup > Investing > Energy trading

Why you should trade energies

Market Advantages

Fast execution

Trade oil, gas, and coal on fast execution with no stop and limit restrictions and no requotes.

Trade on margin

Enter the market with only a fraction of the total trade size. Trade larger amounts by depositing a smaller initial outlay.

Low transaction costs

Trade without commission with no exchange fees and no clearing fees.

Advanced platforms

Trade commodities alongside forex and stocks on the same powerful platform with intuitive charting.

  • Access energy commodity market

  • Take a CFD position on a wide range of energy commodities

  • Trade your opinion of natural resources

The most traded energy commodities are crude oil and its derivatives, gas, coal, power, and petrochemicals. Crude oil, gas, and coal are all fossil fuels that can be extracted from the earth. Global economic developments and reduced oil outputs from established oil wells around the world have historically led to rising oil prices, as demand for energy-related products has gone up at the same time that oil supplies have dwindled.

When buying energy, you speculate that its price will rise versus the USD. When you are short selling energy you speculate that its price will fall versus the USD.

Crude oil

Crude oil is the undisputed heavyweight champion in the commodities world. More barrels of crude oil are traded every single day than any other commodity.

Natural gas

Natural gas is often overshadowed by crude oil. Nevertheless, it’s a major commodity in its own right, used for everything from cooking food to heating houses during the winter.

Coal

Coal accounts for more than 20 percent of total world energy consumption. In the United States, the largest energy market, 50 percent of electricity is generated through coal.

Frequently Asked Questions

Get an answer

How do supply and demand impact the price?

As the supply and demand for energy commodities change, the price of the commodity will also change. The fundamental rule is that commodity prices will rise with increasing demand. Prices will also rise when there is a fall in the overall supply of inventory of a commodity. Thus, the price of a commodity will fall when faced with decreasing demand and increasing supply.

Do geopolitical situations affect the price?

Some energy commodities are produced in regions that experience a great deal of political uncertainty. For example, crude oil is largely produced in countries around the Middle East. This means that the price of Brent and WTI can be heavily influenced by tensions that historically occur in that region.

What are the best energy commodities to trade?

The most popular energy commodities for traders are gas and oil. Both show excellent liquidity and sources of information. However, the best energy commodity for any trader is the one he/she understands the best, one where traders have detailed knowledge about the market, or about supply and demand for the particular commodity.

Is it possible to trade energy commodities online?

Trading energy commodities in the 21st century is electronic and commodities markets can be traded online from all corners of the globe. All that’s needed is a trading account with a broker that offers access to the commodity markets and everyone can trade commodities online.