You can trade oil futures. What to know before you start.

Group 1: Oil Futures Overview - Oil futures are contracts for the future price of oil, typically traded on West Texas Intermediate and Brent Crude [1] - Investing in oil futures is speculative and can be highly volatile, involving margin loans that amplify both profits and losses [1] Group 2: Trading Mechanism - Traders buy futures contracts if they expect oil prices to rise and sell contracts if they believe prices will fall [2][3] - Many brokerages, including Charles Schwab and E-Trade, offer futures trading, but approval for commodities trading is typically required [2][6] Group 3: Leverage and Margin - Futures trading often utilizes leverage through margin accounts, requiring a good-faith deposit of 2% to 12% of the contract value [5] - An example provided indicates that a trader could establish a position with a notional value of $32,500 by putting up at least $2,550 in initial margin [5][7] Group 4: Alternative Investment Options - For those not ready to invest in oil futures, alternatives include oil exchange-traded funds (ETFs) and energy stocks [8] - ETFs such as USO and DBO track oil prices, with expense ratios ranging from 0.60% to 1.43% [8]