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What is the difference between Futures and American Oil?

April 26, 2017American difference Futures Oil

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What is the difference between Futures and American Oil?

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Futures are contracts; they are bets in a way. Future contracts are placed against a delivery of oil at a certain time in the future at a certain price. This type of investment is complex and risky, and generally not appropriate for general investors. American Oil on the other hand allows clients to own tangible oil. In an oil future investment, should the price of oil go down during the contract duration, the client loses his/her investment dollars. With American Oil, you hold on to your investment and sell as you please. The risk is much lower. See our knowledge center for more information.