2006-09-28 06:53:29 · 7 answers · asked by omyruin4it 2 in Business & Finance ➔ Investing
Technically you aren't purchasing the oil - you are purchasing an oil futures contract AND for that you must must have a minimum amount of money in your account that is called initial margin. Keep something in mind about futures trading - you can lose more than your margin AND if you hold the contract that you buy and the price goes down - you will receive a margin call and if you don't meet this your trade will be liquidated. If you don't already have knowledge of how margin and futures work - definitely learn this before trading.
There are 2 oil futures contracts for you to trade - a full size contract and a mini contract. The full size contract has initial margin of $4050/contract AND the mini contract has initial margin of $2025. These were the margin rates as of 9/27/2006 - and these are for the November 2006 contract.
2006-09-28 07:19:48 · answer #1 · answered by sundance 2 · 1⤊ 0⤋
If you don't know what you're doing, I recommend staying away from futures. Buy a mutual fund that holds oil stocks. Russian oil funds in particular, are very promising. Minimum for that ranges from $250 to $500. Often there is no minimum at all, if you sign up for monthly contributions of $50 or more.
2006-09-28 09:06:28 · answer #2 · answered by curious1223 3 · 1⤊ 0⤋
Futures are bought on " margin " meaning a small percentage of the price .. usually 3-5% .. of the total. Contact a few brokers and find out what their commissions are .. futures are risky but you can make a fortune with only a small investment.
2006-09-28 07:01:28 · answer #3 · answered by pocono58 2 · 0⤊ 0⤋
If you only have a small amount to start with, maybe you can find a mutual fund that specializes in the petroleum sector.
2006-09-28 07:04:02 · answer #4 · answered by Ralfcoder 7 · 0⤊ 0⤋
Really no minimum, but you will have to pay a commision, so I would invest at least $1000.
2006-09-28 06:54:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Unless you are entering into a C.P.O.'s account the usual minimum a F.C.M. will accept is $3,000.
2006-09-28 07:13:15 · answer #6 · answered by scottdavidkuehne 1 · 0⤊ 0⤋
Depends on what money you make and want to spend and of course want to make!!
2006-09-28 07:00:53 · answer #7 · answered by vineto 2 · 0⤊ 0⤋