Stop profiteering by oil price speculators - News and Current Events | futures io social day trading
futures io futures trading


Stop profiteering by oil price speculators
Updated: Views / Replies:1,687 / 11
Created: by DionysusToast Attachments:0

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
 
Thread Tools Search this Thread
 

Stop profiteering by oil price speculators

  #1 (permalink)
Market Wizard
Bangkok
 
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
 
DionysusToast's Avatar
 
Posts: 2,666 since Nov 2010
Thanks: 776 given, 8,713 received
Forum Reputation: Legendary

Stop profiteering by oil price speculators


Quoting 
Dear Chairman Gensler,

There is strong evidence the recent surge in gas prices has little to do with the fundamental supply and demand for oil. Government data confirm that oil speculators are driving the price increase. We urge you to restore integrity to our energy markets by exercising the CFTCís authority to require higher margin levels for speculative oil futures contracts.

Speculators are seizing on recent political turmoil in North Africa and the Middle East to drive energy prices to unwarranted levels. The Commitment of Traders Report reveals that speculators have flooded into the market in recent weeks. Since protests began in Egypt on January 25, 2011, money managers have increased their long positions in NYMEX West Texas Intermediate crude oil futures contracts by more than 35 percent, or the equivalent of 75 million barrels of oil. Oil speculators have increased long positions on the Intercontinental Exchange by nearly 50 percent. At the same time, actual legitimate hedgers have reduced their long positions in the oil futures markets.

The loser in this game of oil speculation is the American consumer. Rising oil futures translate into higher gas prices, and that means Americans have less money in their pockets to pay for basic needs.

In the Dodd-Frank Wall Street Reform and Consumer Protection Act, we empowered your Commission with a number of new tools to rein in excessive speculation and prevent market failures. In addition to mandating speculative position limits, we removed the broad statutory restriction that prohibited the CFTC from imposing higher margin requirements. Section 736 authorizes the CFTC to require higher margin requirements in order to protect the financial integrity of the futures trading markets. Now is the time to exercise that authority. New margin requirements could take effect as soon as July, but the CFTC must begin the rulemaking process now. Higher margin levels would reduce incentives for excessive speculation by requiring investors to back their bets with real capital.

For the same reason we donít let pharmaceutical companies approve their own drugs, we shouldnít let futures exchanges self-regulate by setting their own margin requirements. This handís-off, self-regulatory approach has led to a fundamentally inequitable system in which ordinary investors are required to post 50 percent margin to buy a stock, but Wall Street traders post only six percent to purchase a risky and volatile futures contract.

We urge you to act quickly to raise the margin requirements imposed on speculative oil contracts. The margin increase should only apply to speculators, not legitimate hedgers. This is consistent with current exchange policies that apply different margin requirements for investors and bona fide hedgers. With your leadership, we can discourage damaging and excessive speculation in the oil markets and bring down gas prices.
Sen. Bill Nelson (D-Fla.) is a member of the Senate Budget, Commerce and Finance Committees.

More here : Stop profiteering by oil price speculators - The Hill's Congress Blog

I have to say - I do agree that speculation is driving prices and it is no longer supply and demand for oil but supply and demand for contracts that drives prices.

Anyone?

Reply With Quote
The following user says Thank You to DionysusToast for this post:
 
  #2 (permalink)
Market Wizard
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,332 since Aug 2009
Thanks: 4,579 given, 10,313 received


DionysusToast View Post
More here : Stop profiteering by oil price speculators - The Hill's Congress Blog

I have to say - I do agree that speculation is driving prices and it is no longer supply and demand for oil but supply and demand for contracts that drives prices.

Anyone?

I started a similar thread here:

https://futures.io/commodities-futures-trading/8855-really-worth.html#post105984

Reply With Quote
 
  #3 (permalink)
Market Wizard
Bangkok
 
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
 
DionysusToast's Avatar
 
Posts: 2,666 since Nov 2010
Thanks: 776 given, 8,713 received
Forum Reputation: Legendary


Sorry abt that - I missed it - how do we get the powers that be to merge the threads?

Reply With Quote
 
  #4 (permalink)
Market Wizard
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,332 since Aug 2009
Thanks: 4,579 given, 10,313 received


DionysusToast View Post
Sorry abt that - I missed it - how do we get the powers that be to merge the threads?

no problem. probably a mod would have to do that. but I don't care if there's more than one thread, because it's an interesting and important issue.

increasing margins is one step. another could be trading halts after a certain move. or my favorite one, no day trading allowed (maybe except the hedgers).

Reply With Quote
 
  #5 (permalink)
Market Wizard
Bangkok
 
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
 
DionysusToast's Avatar
 
Posts: 2,666 since Nov 2010
Thanks: 776 given, 8,713 received
Forum Reputation: Legendary

I wonder if day trading has the impact though.

A day trader would be neutral at the end of the day so long term price impact should be minimal, right?

Still - I'd be OK with $25k margin for a crude contract. It would be a very different market though....

Reply With Quote
 
  #6 (permalink)
Market Wizard
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,332 since Aug 2009
Thanks: 4,579 given, 10,313 received


DionysusToast View Post
I wonder if day trading has the impact though.

A day trader would be neutral at the end of the day so long term price impact should be minimal, right?

Still - I'd be OK with $25k margin for a crude contract. It would be a very different market though....

could be. I'm just wondering how much volume is done by day traders. I bet it's a lot. and if that volume is missing, then maybe this market is less attractive for speculators in general.

Reply With Quote
 
  #7 (permalink)
Elite Member
Houston,Tx
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: Mirus Futures/Zen-Fire
Favorite Futures: TF
 
ThatManFromTexas's Avatar
 
Posts: 2,302 since Feb 2010
Thanks: 1,208 given, 4,293 received

Typical short sighted knee jerk reaction from a sound bite seeking politician who lacks any understanding how the markets work.

Make it too difficult to trade here... big boys will just go offshore...

The Dubai Exchange would love to become the world trading center for Oil...

Even if they outlawed oil speculation ...

How are they going to control foreign traders?

Wall Street will just have their foreign offices handle the trading.

This should work well , I mean the Kyle bill made all the internet gambling sites go out of business ... right?

Gov'ment needs to stay outta the Ol Bidness....

Regards,
TMFT

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

My daddy always said, "Every day above ground is a good day!"
Reply With Quote
The following 4 users say Thank You to ThatManFromTexas for this post:
 
  #8 (permalink)
Market Wizard
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,332 since Aug 2009
Thanks: 4,579 given, 10,313 received


ThatManFromTexas View Post
Typical short sighted knee jerk reaction from a sound bite seeking politician who lacks any understanding how the markets work.

Make it too difficult to trade here... big boys will just go offshore...

The Dubai Exchange would love to become the world trading center for Oil...

Even if they outlawed oil speculation ...

How are they going to control foreign traders?

Wall Street will just have their foreign offices handle the trading.

This should work well , I mean the Kyle bill made all the internet gambling sites go out of business ... right?

Gov'ment needs to stay outta the Ol Bidness....

Regards,
TMFT

I'm not a politician, but lacking understanding. would you mind enlighten me how markets work?

thank you.

Reply With Quote
 
  #9 (permalink)
Elite Member
Houston,Tx
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: Mirus Futures/Zen-Fire
Favorite Futures: TF
 
ThatManFromTexas's Avatar
 
Posts: 2,302 since Feb 2010
Thanks: 1,208 given, 4,293 received


Silvester17 View Post
I'm not a politician, but lacking understanding. would you mind enlighten me how markets work?

thank you.


Disclaimer: I am not a programmer, coach, trainer or self appointed guru and do NOT hold myself up to be a good example for anything. I do not have a book, trading room or seminar. Even though I have an opinion on every subject you can imagine, I do not give financial advice.

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

My daddy always said, "Every day above ground is a good day!"
Reply With Quote
The following user says Thank You to ThatManFromTexas for this post:
 
  #10 (permalink)
Market Wizard
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,332 since Aug 2009
Thanks: 4,579 given, 10,313 received



ThatManFromTexas View Post
Disclaimer: I am not a programmer, coach, trainer or self appointed guru and do NOT hold myself up to be a good example for anything. I do not have a book, trading room or seminar. Even though I have an opinion on every subject you can imagine, I do not give financial advice.

thanks. but you do have a good sense of humor. that's worth a lot.

Reply With Quote

Reply



futures io > > > > Stop profiteering by oil price speculators

Thread Tools Search this Thread
Search this Thread:

Advanced Search



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

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
When a stop loss order is filled beyond limit price Big Mike Reviews of Brokers and Data Feeds 56 September 15th, 2015 10:01 AM
Oil speculators charged with price manipulation Gary Off-Topic 3 May 24th, 2011 07:36 PM
Why Oil-Price Shock Is Hitting American Consumers Hardest Quick Summary News and Current Events 0 April 14th, 2011 01:40 PM
Stop Price sam028 Terms (Glossary) 0 June 27th, 2010 06:41 PM
BP Is Unable to Stop Oil Leak, Now Looking at Other Options Quick Summary News and Current Events 1 May 29th, 2010 09:33 PM


All times are GMT -4. The time now is 10:18 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 2017-12-10 in 0.19 seconds with 19 queries on phoenix via your IP 54.221.73.186