How much money can you make trading electricity futures?

[p0box4]

I agree. But the reason I'm asking about electricity futures here is because from what I have heard, it is not unrealistic to make big money. If one knows what they are doing of course.

How many retail traders do you think there are that are actually make 7 figures on a daily basis?

My guess? Probably 0.

Start with making consistent money, size doesn't matter. You will see that is difficult enough.
If you can do so the decent income will follow automatically.

 

[deltastrike]

Just looking at the cme there is no volume. No volume means no liquidity.
https://www.cmegroup.com/trading/energy/#electricity

No one trades it on CME, mostly trade one ICE. I doubt there are any retail traders.

 

[Con1991]

No one trades it on CME, mostly trade one ICE. I doubt there are any retail traders.

What is the Margin required for an electricity contract to trade? Why would no retail traders trade this commodity?

 

[ZBZB]

What is the Margin required for an electricity contract to trade? Why would no retail traders trade this commodity?

Finding a clearer is the biggest problem as electricity can go negative. Ask bone on this site.

 

[Banjo]

Query @Sig and @bone.

 

[Tradex]

Start with making consistent money, size doesn't matter. You will see that is difficult enough.
If you can do so the decent income will follow automatically.

Superb post!

Yep, start small and compound your profits week after week, that's what successful trading is all about.

 

[Tradex]

Why would no retail traders trade this commodity?

For now electricity futures is not a liquid contract, regardless of the trading exchange (CME or ICE).

 

[2rosy]

So it's possible to make 7 figures daily either way with electricity?

7 figure swings on overall book and not retail. you can have 7 figure swings trading almonds depending on your size

 

[ducatista]

not for retail

 

[Sig]

I agree. But the reason I'm asking about electricity futures here is because from what I have heard, it is not unrealistic to make big money. If one knows what they are doing of course.

Knowing what you're doing is harder in electricity markets than in most others. There aren't many books about it and most people learn from on the job trading working for a power marketing firm. Additionally at the end of the day there just aren't many traders in these markets who aren't actually serving load or who own generation. So little volume, almost all OTC negotiated even if it's cleared, and most of the players have some legal inside knowledge. I certainly wouldn't recommend it for your first time retail trading, but if you're looking for an interesting job it's worth pursuing an entry level trading job. I'll defer to @bone on that, he's got the most experience doing that of anyone here as far as I know.