TraDaToR May 4, 2011 #1 Hello, Is there a fundamental reason for March being at a discount? It looks like a low risk trade on the long term( short dec/long Mar ).
Hello, Is there a fundamental reason for March being at a discount? It looks like a low risk trade on the long term( short dec/long Mar ).
N nazzdack May 4, 2011 #2 Quote from TraDaToR: ----March being at a discount? ----low risk trade on the long term.... ----( short Dec / long Mar). More... 1) Storage is being "discouraged" in an inverted market. 2) Be careful with slippage and illiquidity in the deferred months.
Quote from TraDaToR: ----March being at a discount? ----low risk trade on the long term.... ----( short Dec / long Mar). More... 1) Storage is being "discouraged" in an inverted market. 2) Be careful with slippage and illiquidity in the deferred months.
TraDaToR May 5, 2011 #3 Quote from nazzdack: 1) Storage is being "discouraged" in an inverted market. 2) Be careful with slippage and illiquidity in the deferred months. More... Yes, but the curve seems "normal" until Mar 12. I have seen inverted markets in metals but not this way.
Quote from nazzdack: 1) Storage is being "discouraged" in an inverted market. 2) Be careful with slippage and illiquidity in the deferred months. More... Yes, but the curve seems "normal" until Mar 12. I have seen inverted markets in metals but not this way.
ogarbitrage May 5, 2011 #4 Just a bad print. Curve is normal. Attachments silvercurve.png silvercurve.png 32 KB · Views: 72
TraDaToR May 5, 2011 #5 On your snapshot, it seems Dec is 0.05 $ over Mar, like on my curve. I didn't notice that further expiries were also cheaper. Is it an anticipation of cheaper prices for 2012?
On your snapshot, it seems Dec is 0.05 $ over Mar, like on my curve. I didn't notice that further expiries were also cheaper. Is it an anticipation of cheaper prices for 2012?
N nazzdack May 5, 2011 #6 Quote from TraDaToR: ----I have seen inverted markets in metals but not this way. More... It's "different" this time. :eek:
Quote from TraDaToR: ----I have seen inverted markets in metals but not this way. More... It's "different" this time. :eek:
