/NG-/HH spread trading

[heispark]

BINGO and you will find this over and over again with spreads!! I am not sure how much size you are trying to move but i doubt the natural gas market is too small for you.

wait until it goes against you big time! think about this. if only one side is moving then you are in an outright futures and there is no reason to be in spread. this is what causes massive damage to spreaders becuase they have so much invovled with the trade they get married to it even more than outright futures traders like me. imagine you put on 30 and you paid 60 lots in slippage and fees! you better be right!! it is very expensive to be wrong in spreads.

Have you ever traded exchange supported spread??
As far as I know, /NG-/HH spread trade is relatively very safe trade, that's why NYMEX charges such a small margin. However, because trading cost is too expensive (trading cost is equal to about 4 ticks move), it can easily eat out a big chunk of my profit. That's the only concern.

 

[bone]

You can PM me over the most mundane minutiae - but you can't PM me over something actually important and trading related?

BONE!!!!! ALERT! YOU ARE NEEDED HERE! @bone @bone

(Does he have a Bat signal or something?)

 

[bone]

The NG contract is for physical delivery, and the HH contract is financially settled. Although the HH contract settlement is derived from the NG final settlement - the basis for physical delivery (the pipeline and storage basis) provides a "wildcard" differential between the two.

The HH contract is basically trying to replicate the success of the Clearport HHNG Swap. The Last-Day Financial Settlement scheme is very popular in the swaps market.

I personally don't trade these types of spreads, and I have never personally traded this particular spread - as I can't successfully model pipeline basis risk.

I have traded all sorts of HHNG intra market spreads and Clearport NG Swaps intra market spreads. They are very liquid trades with plenty of action. They trend very well, and model and "behave" better than outright NG.

Have you ever traded exchange supported spread??
As far as I know, /NG-/HH spread trade is relatively very safe trade, that's why NYMEX charges such a small margin. However, because trading cost is too expensive (trading cost is equal to about 4 ticks move), it can easily eat out a big chunk of my profit. That's the only concern.

 

[bone]

OMG, where do you get these unfounded fantasies from, the movie "Trading Places"?

many people dont really undertand the true risk in spreads and most enormous blow outs are in bad spreads because it is difficult to exit and enter quickly when there is a liquidity event.

 

[tradeking007yahoo]

 

[tradeking007yahoo]

OMG, where do you get these unfounded fantasies from, the movie "Trading Places"?

ALMOST ALL OF THE BIGGEST BLOW OUTS IN HISTORY have been SPREADS with names like in natural gas such as the WIDOW MAKER!!!

YOU have a vested interest in making them look less risky and easy because you are a salesman of 7000 dollar courses just like most outright teachers and gurus classes are 2 to 3000 your is double that just like the commissions and fees in spreads!

how you define risk overall is important!!

 

[bone]

Fortunately I have a long list of clients over a twelve year period who disagree with you. Spread trading does not amplify risk. Just like typing in all CAPS doesn't make your point any more relevant or honest.

ALMOST ALL OF THE BIGGEST BLOW OUTS IN HISTORY have been SPREADS with names like in natural gas such as the WIDOW MAKER!!!

YOU have a vested interest in making them look less risky and easy because you are a salesman of 7000 dollar courses just like most outright teachers and gurus classes are 2 to 3000 your is double that just like the commissions and fees in spreads!

how you define risk overall is important!!

 

[tradeking007yahoo]

from this site brian hunter amaranth lost 5 billion in natty spreads.. let me guess you got the holy grail.. bahaha yeah charging 7k for a class and recordings of questiuons.

you do what you do but do not attack me because you are WRONG about the true risk in spread trading. Where are all of your clients million dollar houses?

where are the wealthy clients you have trained.. well anyone who can pony up 7k must have a decent bases to start with and I am not against what you do but if you are going to have 3500 price tag and then a 7000 dolalr price tag be ready for "SUCCESSFUL TRADERS" to poke holes in this exorbitant price tag.

If spreads are so wonderful why are you charging so much and not just trading them yourself!!
and if you are trading them then why are you charging 7,000 dollars to show someone how to trade? it is still just trading!! with RISK.

 

[tradeking007yahoo]

again there is a lot of risk in spreads especially when you can trade them with low margin why do you think they offer low margin? ha
https://www.bloomberg.com/news/arti...ural-gas-trade-collapses-on-warm-fall-weather

 

[bone]

You know who took the other side of Hunter's trade? John Arnold (Centaurus)

from this site brian hunter amaranth lost 5 billion in natty spreads.. let me guess you got the holy grail.. bahaha yeah charging 7k for a class and recordings of questiuons.

you do what you do but do not attack me because you are WRONG about the true risk in spread trading. Where are all of your clients million dollar houses?

where are the wealthy clients you have trained.. well anyone who can pony up 7k must have a decent bases to start with and I am not against what you do but if you are going to have 3500 price tag and then a 7000 dolalr price tag be ready for "SUCCESSFUL TRADERS" to poke holes in this exorbitant price tag.

If spreads are so wonderful why are you charging so much and not just trading them yourself!!
and if you are trading them then why are you charging 7,000 dollars to show someone how to trade? it is still just trading!! with RISK.