CL Questions - Commodities Futures Trading | futures io social day trading
futures io futures trading


CL Questions
Updated: Views / Replies:3,434 / 13
Created: by jonc Attachments:1

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 1  
 
Thread Tools Search this Thread
 

CL Questions

  #11 (permalink)
Elite Member
australia
 
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: -
 
Posts: 300 since Sep 2010
Thanks: 123 given, 137 received


TempletonPeck View Post
In my last post I was writing about the spread between BRN and CL. I guess you now refer to the offset between current month and front month of the same instrument. In my opinion there is no usual behavior of price when we approach rollover. Sometimes the offset on the rollover day is large and sometimes it is very small.

Here are some posts referring t the same topic
https://futures.io/brokers-data-feeds/3541-changing-rollover-dates-cl-crude-oil-futures-contract.html#post35052
https://futures.io/brokers-data-feeds/3541-changing-rollover-dates-cl-crude-oil-futures-contract-2.html#post71646

I think you cannot trade based on these expectations. Remember:
The market can stay irrational longer than you can stay solvent.

Thanks Templeton, what I am thinking of doing now is to long WTI alone. I believe the spread will be narrowed - with BC coming down and WTI going up or BC going up and WTI closing the gap by going up faster.

I'm would want to understand the rollover behavior before I jump in.

Reply With Quote
 
  #12 (permalink)
Elite Member
Vancouver
 
Futures Experience: Intermediate
Platform: Ninja
Favorite Futures: CL GC
 
Posts: 43 since Oct 2010
Thanks: 24 given, 46 received

If you like the spread; trade the spread not just one side

You have a good idea; there may be a profit if the spread goes back to "normal". Margins on spreads are much reduced; so your ROI can be worthwhile on a smaller move and the intraday fluctuations need not whip you out of a "correct" position. However, if I read you correctly; you are thinking about taking only one side of the spread. That can be dangerous. You can be correct that the spread will shrink but when we have CL moving $6 in a day on black swan events; that change in the spread can be insignificant.

Watching the spread can give you insight into the market. CL is a storable item. There is a carrying cost (storage, insurance and interest cost). Right now the CLJ is almost $4 over CLH while CLM is only $1 over CLK. What I hear the market saying is that we do not want more oil right now. Please keep it in a ship somewhere and deliver it later. The market is paying abnormally more than the carrying cost. My guess is that when we get past this rash of extraordinary events; the CL will fall quickly. I would not want to be holding a long position ; waiting for the spread to narrow. But if you hold both sides of the spread your account volatility will likely be less.

Reply With Quote
 
  #13 (permalink)
Elite Member
australia
 
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: -
 
Posts: 300 since Sep 2010
Thanks: 123 given, 137 received



trade8888 View Post
You have a good idea; there may be a profit if the spread goes back to "normal". Margins on spreads are much reduced; so your ROI can be worthwhile on a smaller move and the intraday fluctuations need not whip you out of a "correct" position. However, if I read you correctly; you are thinking about taking only one side of the spread. That can be dangerous. You can be correct that the spread will shrink but when we have CL moving $6 in a day on black swan events; that change in the spread can be insignificant.

Watching the spread can give you insight into the market. CL is a storable item. There is a carrying cost (storage, insurance and interest cost). Right now the CLJ is almost $4 over CLH while CLM is only $1 over CLK. What I hear the market saying is that we do not want more oil right now. Please keep it in a ship somewhere and deliver it later. The market is paying abnormally more than the carrying cost. My guess is that when we get past this rash of extraordinary events; the CL will fall quickly. I would not want to be holding a long position ; waiting for the spread to narrow. But if you hold both sides of the spread your account volatility will likely be less.

I took profit too early on CL. The climb up was quite scary, I was afraid it will come down just as fast

Reply With Quote
 
  #14 (permalink)
Just starting out...
New York City, NY
 
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: CL
 
Posts: 4 since Feb 2011
Thanks: 3 given, 1 received

Who trades BRN?

If you have the patience to field a newbie question -- I was just wondering who are the big traders of BRN and why? Hedgers who can't get enough volume in CL or who are hedging particular exposure in Brent, big speculators who want more oil exposure, arbitrageurs, mostly Europeans, or other? And what is volume or general market size of BRN compared to CL? And why is CL more predominant than BRN (or is that just my limited exposure)?

Thanks for your thoughts.

Reply With Quote

Reply



futures io > > > > CL Questions

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
ADXVMA Questions max-td NinjaTrader Programming 52 October 2nd, 2013 06:24 AM
Several questions about futures rounder8 Beginners and Introductions 6 June 24th, 2011 08:25 AM
Money management questions for CL traders vegasfoster Psychology and Money Management 9 May 2nd, 2011 02:36 AM
Switch from ES to CL - Quick Questions trumpy The Elite Circle 4 July 16th, 2010 06:43 PM
Problem with roll-over of CL 06-10 to CL 07-10 jharthun Reviews of Brokers and Data Feeds 15 June 13th, 2010 03:46 PM


All times are GMT -4. The time now is 04:54 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-13 in 0.09 seconds with 20 queries on phoenix via your IP 54.90.92.204