There are numerous commodities where people can invest. Oil business is one of such sectors. Future trading of crude oil is very fresh in the commodity trading but if people choose the commodity without having sound knowledge of the commodity the proposition might turn out to be a nightmare for them as it can be termed to have a gambling effect to it.

People might make a profit or might loose from trading because of the fluctuation of prices that happens on a daily basis.

Oil can be considered as one of the most volatile commodities of trading so if one wants the trading to happen in one’s favor then one needs to gather all the affecting factors before going for the trading or else it will be just like gambling.

It was the year of 1983 on the NYMEX platform when crude oil future trading started with the size of forty two thousand gallons as per contract which turned out to be one thousand American barrels.

At present the required margin of trading is in the tune of nine thousand seven hundred and eighty eight dollars. Nepal MEX or Mercantile Exchange of Nepal started trading in crude oil from the year of 2008 starting with two hundred and fifty American barrels.

According to MEX Nepal they trade almost one thousand five hundred to three thousand contracts of crude oil in one month’s time.

Traders loose out on their money as they dream of making huge profits. Crude oil trading is not a very simple proposition. Every OPEC (Organization of Petroleum Exporting Countries) move taken has to be monitored by traders as the body controls the price of oil. OPEC was formed in the year of 1960 to organize and protect the interests of oil producing countries.