The oil market is known for its high volatility, with prices often fluctuating based on global events and economic factors. These fluctuations can have a significant impact on both producers and consumers, making it important for market participants to manage their risk exposure effectively.
One way to do this is through volatility trading, a strategy that involves profiting from changes in the level of market volatility.
In this article, we will explore the role of volatility trading in oil markets, how it works, and the benefits it can offer.
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