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Learn Commodity Trading. Trade S&P Futures and Dow Futures. One thing should be clear to you. Energy markets will be a major focal point in the global financial makers and the global economy for many years to come. The key to understanding energy trading is to understand oil, natural gas, gasoline and heating oil futures. Again crude oil prices have started rising. The recent price of crude oil was quoted as $ 80 per barrel. It is being predicted that the price will soon reach the $ 100 per barrel mark. Analysts are of the opinion that this price might reach as high as $ 200 per barrel. In any case, with the end of global recession, the demand for crude oil will again rise making the oil prices go sky high as the supply cannot keep up with the rising demand.

You must be thinking that crude oil trading is being done only between different countries or hedge funds or highly wealthy individuals. For your information, crude oil contracts can also be traded by retail traders like you and me. NYMEX trades futures and options contracts for crude oil, natural gas, heating oil, gasoline, coal, electricity and propane. NYMEX is also home to trading in metals. Trading in energy futures is centralized at the New York Mercantile Exchange (NYMEX), the world’s largest physical commodity futures exchange.

For smaller traders NYMEX offers e-mini contracts for oil and natural gas that also trades on the GLOBEX network of the Chicago Mercantile Exchange (CME). Trading in NYMEX is conducted in two divisions: 1) The NYMEX Division and 2) The COMEX Division. You can trade crude oil futures. If you haven’t done futures trading before than before you start trading crude oil futures, you should first educate yourself on how to trade futures contracts. The good thing is that you can paper trade on your demo account with the use of virtual money. Paper trading is something that should not be missed by even professional traders. Practice makes your trading perfect!

One of the most important variables for any economy is the interest rates. Very high interest rates can make the economy come to a screeching halt as most businesses won’t be able to afford high interest rate loans. On the other extreme, very low interest rates can make inflation too high in the economy. Now there is a relationship between the oil prices and the interest rates. The relationship between energy and interest rates is very important to understand. This relationship ties together the two most important aspects of the global economy: energy (the fuel for growth) and the interest rates (the catalyst that powers borrowed money to do things). Next to interest rates, energy and especially oil is the center of the universe not only for the industry but also for the financial markets.