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CL Questions
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CL Questions

  #1 (permalink)
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CL Questions

The spread between brent crude and WTI is really huge. Do this kind of spread offer trading opportunity?

Can we take more short position in CL in the current context? It had been dropping over the last few days

Does front month CL usually drop more as it is closer to rollover date?

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jonc View Post
The spread between brent crude and WTI is really huge. Do this kind of spread offer trading opportunity?

Can we take more short position in CL in the current context? It had been dropping over the last few days

Does front month CL usually drop more as it is closer to rollover date?


LiveCommodityTrading View Post
No, it is not reliable enough to take a position on it. I would stay away from that style of trading crude, just because of the spread...

The "O'l Bidness" is not for the faint of heart...

I'm just a simple man trading a simple plan.

My daddy always said, "Every day above ground is a good day!"
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  #3 (permalink)
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jonc View Post
The spread between brent crude and WTI is really huge. Do this kind of spread offer trading opportunity?

Can we take more short position in CL in the current context? It had been dropping over the last few days

Does front month CL usually drop more as it is closer to rollover date?

It is my opinion that the only way you can really profit from spreads would be if you have dedicated servers setting next to the exchange with a 15 microsecond (not millisecond) ping to the exchange and execution server, and have some strong HFT algos working the market.

Firms profiting from spreads are doing so before any normal retail trader would ever even have a chance to click a button on your platform.

Just my opinion - I have no experience with it

Mike

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  #4 (permalink)
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Perhaps I missunderstood the question but I don´t think jonc talks about microsecond trades.

The spread between Brent Crude and CL is extremely huge, nearly 15 $

April contract BRN 102.81 $
April contact CL 88,17 $

I think the thread opener talks about a longer term spread trade > Buy CL and Sell BRN.

Anybody here does this spread trading, perhaps not with futures but with options, warrants,...?

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TempletonPeck View Post
Perhaps I missunderstood the question but I don´t think jonc talks about microsecond trades.

The spread between Brent Crude and CL is extremely huge, nearly 15 $

April contract BRN 102.81 $
April contact CL 88,17 $

I think the thread opener talks about a longer term spread trade > Buy CL and Sell BRN.

Anybody here does this spread trading, perhaps not with futures but with options, warrants,...?

Yup that is what I was getting at.

However, I'm not quite sure if we should Buy CL and Sell BRN, since this spread must had been caused by big money. You would have made money by just following them Buy BC and Sell CL. But now it seems to be too late in the game

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jonc View Post
Yup that is what I was getting at.

However, I'm not quite sure if we should Buy CL and Sell BRN, since this spread must had been caused by big money. You would have made money by just following them Buy BC and Sell CL. But now it seems to be too late in the game

I wouldn´t recommend to do anything like that either. Very high risk. But I know people who have traded these spreads (not with futures but with CFDs). Currently the spread is as large as never before. There is definitely big money in this game. I shouldn´t wonder if this spread extension has blown up some energy funds.

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TempletonPeck View Post
I wouldn´t recommend to do anything like that either. Very high risk. But I know people who have traded these spreads (not with futures but with CFDs). Currently the spread is as large as never before. There is definitely big money in this game. I shouldn´t wonder if this spread extension has blown up some energy funds.

I understand CFD is still tied to the futures, so what is the usual behavior of the price when we approach rollover? Suppose I bought an Apr contract which is at a premium to the Mar contract, when the rollover happens next week, would there be a drastic drop in the price of the Apr contract?

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General infos concerning correlation between crude and wti and possible scenarios FT Alphaville Oil shock 2.0, or, the benchmark wars

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jonc View Post
I understand CFD is still tied to the futures, so what is the usual behavior of the price when we approach rollover? Suppose I bought an Apr contract which is at a premium to the Mar contract, when the rollover happens next week, would there be a drastic drop in the price of the Apr contract?

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.

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Yes I misunderstood, sorry.

I saw a related article on CNBC today:
News Headlines

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
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2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
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