Advantages and disadvantages of trading Oil(CL) vs. ES

[Maverick74]

ES is missing the calendar trading opportunity. So it is only good for outright, or spreading over stock portfolio. This is the main reason I do not trade it much.

CL add the calendar dimension. I can easily roll into next few months. I can also trade spreads over many months.

Stock index futures almost do not trade past the front month (at least NQ). ES could be better, but still no good.

Actually index spreads are huge. You can spread ES against NQ, TF, YM, DAX, etc. Tons of spreads out there.

 

[Maverick74]

Let me know of ES overnight trading volume vs. CL overnight trading volume.... Huge day trading volume does not mean it is more liquid...

Actually they are about the same. Spoos and CL trade comparable volumes overnight. Brent gets far more action then CL does overnight.

 

[RedSun]

How easily can I calendar spread ES and NQ to Sept and December contracts and further?

Since stock and stock index are cash, not commodity, calendar spread has no meaning, just interest carry. So there is no market for calendar spread.... This is what I'm talking about. It is missing that entire dimension.

 

[Maverick74]

How easily can I calendar spread ES and NQ to Sept and December contracts and further?

Since stock and stock index are cash, not commodity, calendar spread has no meaning, just interest carry. So there is no market for calendar spread.... This is what I'm talking about. It is missing that entire dimension.

Dude, with all due respect, from reading your posts, I don't think you have any idea what the "meaning" of the carry market in energy spreads.

And you can spread index futures out quite a bit and yes, there are tons of niche plays people put on outside of interest rate swaps. No, I'm not going to walk you through it.

 

[Low Salubrity Thug]

Let me know of ES overnight trading volume vs. CL overnight trading volume.... Huge day trading volume does not mean it is more liquid...

I assume you are trolling but just in case you aren't...

Trading volume has absolutely nothing to do with liquidity.

Liquidity: The degree to which an asset can be bought or sold at market without affecting the asset's price.

This is generally quantified as the number of contracts resting in the order book within x ticks of the inside market.

Only a cursory study of the ES and CL books is required to demonstrate your statement about their relative liquidity is incorrect.

Thanks for visiting. Now put your anal probe away and shuffle back to your flying saucer please.

 

[RedSun]

This is correct. To me CL has more liquidity than ES. I do not care about volume.

CL is extremely tight market and it has very active extended hour global trading market. Several of the front month contracts are very active too. I believe CL contract size is smaller too.

 

[spotapov]

Hi everyone. I have tested about 6-7 years at CL and ES and I can say that ES is better for long trades and worse for short trades, I think it is because ES is investing instrument, because it is a stock index, and historically people only buy stocks, like investing in the future. What about CL, it trades good in long and good in short, because it is really speculative instrument. So guys, it is the main difference between CL and ES.

 

[Overnight]

Hi everyone. I have tested about 6-7 years at CL and ES and I can say that ES is better for long trades and worse for short trades, I think it is because ES is investing instrument, because it is a stock index, and historically people only buy stocks, like investing in the future. What about CL, it trades good in long and good in short, because it is really speculative instrument. So guys, it is the main difference between CL and ES.

Trading and investing are not the same things.