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spot oil and forex
- Thread starter Moe27
- Start date
lol ok. you win mr adeptness
I trade daily USO watching CL front & next month.
USO trades like a stock but mimics Nymex crude. (It does lag badly due to management cost & month to month futures roll over costs)
But I can trade in small quantities ,unlike minimum 1 CL contract!
I trade 100 shares (even 50 shares sometimes) & average down up to 500 shares .(crude does drop intraday up to 2 dollars)
This will work only at a low cost broker like IB where I pay minimum $1 for up to 200 shares. (Not if you pay $7-10 per ticket)
Last week when USO traded down from 51.75 to 49.15, I am still holding small quantities bought at the top (50-100 shares) but leveraged more at the bottom range & came out ok.!
This strategy may not work all the time.
But if you want to long oil but want to nibble small quantities USO is a fine vehicle.
UNG is the newest ETF mimicking Henry HUB Natural gas.
USO trades like a stock but mimics Nymex crude. (It does lag badly due to management cost & month to month futures roll over costs)
But I can trade in small quantities ,unlike minimum 1 CL contract!
I trade 100 shares (even 50 shares sometimes) & average down up to 500 shares .(crude does drop intraday up to 2 dollars)
This will work only at a low cost broker like IB where I pay minimum $1 for up to 200 shares. (Not if you pay $7-10 per ticket)
Last week when USO traded down from 51.75 to 49.15, I am still holding small quantities bought at the top (50-100 shares) but leveraged more at the bottom range & came out ok.!
This strategy may not work all the time.
But if you want to long oil but want to nibble small quantities USO is a fine vehicle.
UNG is the newest ETF mimicking Henry HUB Natural gas.
Quote from Bitstream:
you can trade crude oil spot [nymex/brent] trough cfds or spread betting. i wouldn't if i was you, nevertheless the contract is available trough cfd brokers.
CFDs and spread betting (tax-free, BTW), while popular in the UK and a handful of other countries, are prohibited by the SEC and thus not available to US residents.
Quote from Moe27:
You guys got this thread all f up. not one post about anything, just a bunch of immature amateurs
You asked for *FX brokers* that offer *spot oil* tradeing. I am very sorry, but you have no leg to stand on when it comes to call other people amateurs.
I meant my first answer, altho sloppy in phrasing, quite serious. It would appear i have to spell it out once again, just for you.
Lets ignore the fact that spot oil is alomst exclusivly traded among institutional participants and corporates: a spot-transaction is due for immediate settlement, that means 2 businessdays in most cases(delivery + payment). It is also an OTC transaction, that means if you want to activly trade it, you need a clearing account. That alone is a major hurdle for private investors. Then you need credit-lines to conduct OTC-deals with other counterparties. You need relationships to oil-brokers (one will not do) and other market-participants. And you need means of transportation and storage, since those deals are typically not cash-settled.
CFDs, mentioned by a poster above, are derivative products, which inherently are not suited to conduct spot transactions.
Amateurish regards,
P.
slow down little man, grow a little bit before comming at me like that, any way i found a broker.Quote from Pippi436:
You asked for *FX brokers* that offer *spot oil* tradeing. I am very sorry, but you have no leg to stand on when it comes to call other people amateurs.
I meant my first answer, altho sloppy in phrasing, quite serious. It would appear i have to spell it out once again, just for you.
Lets ignore the fact that spot oil is alomst exclusivly traded among institutional participants and corporates: a spot-transaction is due for immediate settlement, that means 2 businessdays in most cases(delivery + payment). It is also an OTC transaction, that means if you want to activly trade it, you need a clearing account. That alone is a major hurdle for private investors. Then you need credit-lines to conduct OTC-deals with other counterparties. You need relationships to oil-brokers (one will not do) and other market-participants. And you need means of transportation and storage, since those deals are typically not cash-settled.
CFDs, mentioned by a poster above, are derivative products, which inherently are not suited to conduct spot transactions.
Amateurish regards,
P.
Glad to hear you found a broker...
i recently heard about a company called Energex...I am not sure their platform is live yet, but check it out.
www.Energyforex.com
i recently heard about a company called Energex...I am not sure their platform is live yet, but check it out.
www.Energyforex.com