Crude Oil (CL Large Contract) Spread Trading

Really? Its better than when you enter in a high probability short or long for a scalp? Can you give an example on how its better, are these more F/A type trades vs TA in that you have to understand the forces behind crude markets?


Quote from rubibond007:

Futures Spreads is by far the best and most efficient way to trade the energy markets, bar none. And you can play over a dozen of different strategies.
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Quote from rmb623:

Couple of question. Just trying to learn the theory here.
1) why would a build in inventories cause Jan to fall at a quicker rate than feb.?
2) What if you thought a build in inventories caused Feb to fall at a quicker rate then January. How would you trade that then?
3) If you thought a shortage in inventories caused Jan to rise faster than Feb you would go long the jan feb spread?
4) What if you thought a shortage in inventories caused Feb to rise faster than Jan. How would you trade it then?
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hi...the reply might be a bit too late..btw i ll try answering ur queries
1) the built in inventories in jan means there is more to supply in jan that brings the price for jan contract delivery to come down vis-a-vis the feb contract
2)this scenario is unlikely unless there is some expectation of increased supply in feb
3) yes
4)reverse as no.2
i hope this might be of some help..plz reply fr clarifications/queries
 
Quote from increasenow:

google it...be hungry to learn
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ya i am trying that too....but getting mostly for crude outrights not spreads..was trying to find our more pertinent ones...if anyone had ideas...thats what we are here for ,right? ..sharing ideas and info.
 
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