How can the average person short crude oil?

Question

If you think the price of crude oil is due for a turn-around - what kind of options are available to the average investor to take advantage of tha? I know there are some ETF s like DCR that give a 2 pct change for every 1pct change of crude price .. any other options?

Answer 1

Spread betting would be your best option, be careful though and use stop losses all the time and also be mindful that the price of oil tends to fluctuate sharply so you might run the risk of being stopped out of the market. There are some firms that offer you the chance to do some virtual trading at first. I would strongly advise you to do this first, it will give you a feel of what would be your best timing and strategy. You can browse the Internet for different companies available and also compare the spreads offered before you start real trading. I use deal 4 free and I have been trading crude oil for nearly 3 years now. They r good but as usual shop around and make up your mind.

Answer 2

If you want to short oil:

Short "USO, OIH, OIL, XLE"

or if really aggressive, go LONG "DUG"

http://finance.yahoo.com/q?d=t&s=DUG

2x short oil.