Carbon Emission Futures?

Thank you for promoting the idea that we COULD make money on something from 10 years ago, that you lost money on, that no longer exists. So we'd need a WayBack machine to replicate your failures. Way to go! That's the spirit of positivity traders need! Thanks a ton to suggest that we trade something you lost money on, because it was hot 10 years ago!

WTF crawled up your ass? OP asked, guy answers and you go off on a legitimate response? Newsflash, people make money in the market from other losing it.
 
WTF is that??
Anyone trading this?
What's the story?
This is a pretty complicated market that yields well to complex modeling using marginal abatement cost curves of mitigation technology. If that is all beyond you, it's probably not a great place for you to be trading as the people who do understand it will be able to kill you pretty easily.
 
I just noticed it.
Of course I want to trade it but I don't even know what the hell it is?
Just price of carbon?
I have to check the specs and volume on ICE
 
I just noticed it.
Of course I want to trade it but I don't even know what the hell it is?
Just price of carbon?
I have to check the specs and volume on ICE
There is a market in the EU for emissions. At the danger of grossly oversimplifying, each country has a cap of carbon they've agreed to emit. It may be cheaper for some companies to mitigate their carbon emissions than others. The market is designed for the companies who can cut carbon emissions at the lowest cost to do so, for which they earn emissions credits. Companies that don't cut their emissions have to buy these credits to cover their emissions. If the market was completely efficient, the price that these traded at would be the along the marginal abatement cost curve, i.e. the cost for the cheapest to mitigate emitters to mitigate. Of course the market isn't 100% efficient and you could speculate, but it does fall pretty close to that line over time.
 
The CME is on a quota system, they have to come out with one new contract every month. Sometime when you are bored just look at them all. If they can't think of anything they just come up with a new egg contract.
 
Don't even bother with the CME thing, ECF futures on ICEEU have significant volume. Stick to Dec contracts (and sometimes March).

This is data from today so vol is a bit low but check any daily chart and there's vol.

eua_oi_vol.png


If the 110$/month to trade on ICEEU (where you have access to ICE Brent, ICE WTI, ICE Gasoil, etc) is too much for you, then you shouldn't be trading this anyway.
 
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