DTO crude oil ETF-PowerShares DB is twice short. If the oil price has bottomed out and you want to buy crude oil at the bottom, you can buy long ETFs such as USO and UCO. If the oil price rises, the ETF you buy will also rise.
If you think that oil prices will continue to fall, you can buy short-selling ETFs, such as SCO and DTO. The lower the oil price falls, the higher the price of the short-selling ETFs you buy.
The crude oil index is API degree: a measure developed by the American Petroleum Institute (API) to express the density of oil and petroleum products.
Generally, the better the quality of the oil, the higher the degree.
If the crude oil index rises, the price of crude oil will rise, just like the U.S. dollar index.
Extended information: Notes: Crude oil investment is a high-return investment, so there are naturally many risks in the transaction.
Investors must consider the possibility of investment risks before trading, and the position setting should be reasonable and not too large.
Every transaction attempts to capture the highest and lowest points of the market in an attempt to obtain maximum profits. This is the motivation for ultra-low bottoming.
However, in crude oil trading, the market trend is unpredictable and there may be huge fluctuations in the short term. Therefore, it is quite difficult to grasp the highest point and lowest point of each time. Investors should not be paranoid about this and instead ignore crude oil.
The general market trend.