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WTI Crude Oil Trading

  • #7,361
  • Apr 17, 2020 9:14am Apr 17, 2020 9:14am
Guess WTI 15$ is comming
  • #7,362
  • Apr 17, 2020 10:07am Apr 17, 2020 10:07am
Day traders and scalpers be careful. It’s Friday and pure shenanigans today. Doubt it will make any significant move, just erratic swings
  • #7,363
  • Apr 17, 2020 11:05am Apr 17, 2020 11:05am
Does anyone know, what will happen with the XTIUSD price, once the June contract on tuesday takes place? Will there be two separate prices for oil, that eventually merge together in convergency with the expiration, or the spot price will jump into the levels of future contract, as it has the same underlying asset? Is there an arbitrage opportunity to buy one, sell another... or the broker will handle it somehow.
  • #7,364
  • Apr 17, 2020 12:06pm Apr 17, 2020 12:06pm
How big is typically the roll from one contract to another? When April switched to May, i think it was around 40 cent...
  • #7,365
  • Apr 17, 2020 12:59pm Apr 17, 2020 12:59pm
wouldn't be surprised if we got a late afternoon surge upwards to end the day
  • #7,366
  • Apr 17, 2020 1:24pm Apr 17, 2020 1:24pm
Quoting Kwame Freder
wouldn't be surprised if we got a late afternoon surge upwards to end the day
i see what u mean
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persistence and determination alone are omnipotent
  • #7,367
  • Apr 17, 2020 1:40pm Apr 17, 2020 1:40pm
Quoting Ll1979
{quote} i see what u mean {image}
lets see if it can sustain bit higher
  • #7,368
  • Apr 17, 2020 3:05pm Apr 17, 2020 3:05pm
Quoting Kwame Freder
wouldn't be surprised if we got a late afternoon surge upwards to end the day
doesn't look like it will be happening today. mediocre trading day for me, pennies, but there's always next week. have a good one!
  • #7,369
  • Apr 17, 2020 5:21pm Apr 17, 2020 5:21pm
With closing prices of $20.25 yesterday and $19.75 today WTI is really trading in a narrow range around the support price of $20.
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  • #7,370
  • Apr 18, 2020 1:33am Apr 18, 2020 1:33am
Quoting agazzi86
{quote} Sorry mate just want to confirm, are you sure it just $700 not $7.000? Because for example if I buy 1 lot at $30 then i close at $31 my profit is $1.000.. Then now rollover spread may and june is $7 If buy 1 lot will get rollover cut $700 or $7.000
sorry, i am still confused about this rollover and how it this is going to affect me if I am long XTIUSD.
say that i am long at $18 at which i am not making or losing money. On rollover date, the May/June difference is $7. How is this going to affect me? When you say rollover cut of $7, isn't it merely rebasing of the price, hence when the price jumps to $25 I am still in no loss or profit? Or is my account going to show loss for some reason? Am I missing anything here?
  • #7,371
  • Apr 18, 2020 1:34am Apr 18, 2020 1:34am
Quoting Ll1979
{quote} The rollover is based on the tick size so your absolutely right it's $ 7000 in your case. just being curious how is your product named I used to trade XTIUSD CFD product. {image}
sorry, i am still confused about this rollover and how it this is going to affect me if I am long XTIUSD.
say that i am long at $18 at which i am not making or losing money. On rollover date, the May/June difference is $7. How is this going to affect me? When you say rollover cut of $7, isn't it merely rebasing of the price, hence when the price jumps to $25 I am still in no loss or profit? Or is my account going to show loss for some reason? Am I missing anything here?

Copying my question to you as well as you seem to know how this works.

Many thanks
  • #7,372
  • Apr 18, 2020 1:43am Apr 18, 2020 1:43am
Quoting tonny47
{quote} sorry, i am still confused about this rollover and how it this is going to affect me if I am long XTIUSD. say that i am long at $18 at which i am not making or losing money. On rollover date, the May/June difference is $7. How is this going to affect me? When you say rollover cut of $7, isn't it merely rebasing of the price, hence when the price jumps to $25 I am still in no loss or profit? Or is my account going to show loss for some reason? Am I missing anything here? Copying my question to you as well as you seem to know how this works....
Your not losing money depending on your position (long or short) the difference is reimbursed or subtracted from your account. Depending on your CFD broker swaps may apply.
persistence and determination alone are omnipotent
  • #7,373
  • Apr 18, 2020 1:50am Apr 18, 2020 1:50am
Quoting Ll1979
{quote} Your not losing money depending on your position (long or short) the difference is reimbursed or subtracted from your account. Depending on your CFD broker swaps may apply.
Side note with big rollovers on a small sccount you could get problems with your margin.
persistence and determination alone are omnipotent
  • #7,374
  • Apr 18, 2020 1:51am Apr 18, 2020 1:51am
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persistence and determination alone are omnipotent
  • #7,375
  • Apr 18, 2020 1:54am Apr 18, 2020 1:54am
Quoting Ll1979
{quote} Side note with big rollovers on a small sccount you could get problems with your margin.
Why would I get problems with margin?

As per your answer higher, I would be net nil because what I would be charged in rollover would be offset by the price increase from 18 to 25, right?
  • #7,376
  • Apr 18, 2020 2:34am Apr 18, 2020 2:34am
Quoting tonny47
{quote} Why would I get problems with margin? As per your answer higher, I would be net nil because what I would be charged in rollover would be offset by the price increase from 18 to 25, right?
That's correct. Most of the times rollover are relatively small but in case of a big rollover if you don't have the money or your margin requirements got hit than this results into a problem.

some examples:

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persistence and determination alone are omnipotent
  • #7,377
  • Apr 18, 2020 4:08am Apr 18, 2020 4:08am
Quoting Ll1979
{quote} That's correct. Most of the times rollover are relatively small but in case of a big rollover if you don't have the money or your margin requirements got hit than this results into a problem. some examples: https://www.youtube.com/watch?v=tyPVlTSFNtM
thats very helpful, thank you! it says that there is no impact on equity in this one specifically but my understanding is from what you have written is that at some brokers, this process may not be instantaneous i.e. it reduces your equity first (at which point you could get a margin call) and a second later it increases it.
  • #7,378
  • Edited 4:44am Apr 18, 2020 4:16am | Edited 4:44am
Quoting Ll1979
https://youtu.be/jkzc2z7OVQM
on one hand it seems like a lot of fracking has been shut down which should help to stabilise prices but still this doesn't sound very optimistic with storage filling up. so not entirely clear to me whether the price will go up in coming weeks or down

It seems that some of the producers in Texas were selling for $2 a barrel and couple of them paid buyer to take oil of their hands. But that's probably very small proportion of them. How can WTI trade in 20's if they are selling for less than $10. I know its the futures price that is in 20's, but still.
  • #7,379
  • Apr 18, 2020 4:59am Apr 18, 2020 4:59am
Quoting tonny47
{quote} thats very helpful, thank you! it says that there is no impact on equity in this one specifically but my understanding is from what you have written is that at some brokers, this process may not be instantaneous i.e. it reduces your equity first (at which point you could get a margin call) and a second later it increases it.
Beside some additional cost ... It shouldn't be but certainly wouldn't bed on it.

example below (described vaguely imho)

source:
http://www.forexcfds.com.au/doc/Fore...tAgreement.pdf

13.2ROLLOVER OF FUTURESBASED CFDSA rollover will arise inFuturesBased CFDs, such asCommodity CFDs and Index Futures CFDs,when the underlying front month futures contract is approaching the Expiry Date and we change our CFD pricing feed from the front month to the Next Serial Futures Contract.When the new price feed takes affect you will immediately create a gain or loss in your open trade equity. This profit or loss will depend on your Position size and direction and the price differential of the expiring Contract and the new Contract on which the price will be now based. You will be credited or debited with a Rollover Charge or Rollover Benefit that will fully offset the effect of the abovementioned profit or loss. For example, if you have made a profit on the change the new Contract Price feed you will receive a Rollover Charge which will offset the gain.

13.3SETTLEMENTIn relation to Swap Charges and Swap Benefits, they will be accrued in the swap value field of your open Contracts. In the event there are insufficient funds in your Account, any amount due to us because of the Swap Charges becomes a debt due and owing by you to us. In relation to FuturesBased CFDs, Rollover Charges and Rollover Benefits will be accrued in the Rollover value field of your open Contract. In the event that there are insufficient funds in your Account, any amount due to us because of the Rollover Charges becomes a debt due and owing by you to us.
persistence and determination alone are omnipotent
  • #7,380
  • Apr 18, 2020 5:13am Apr 18, 2020 5:13am
Quoting tonny47
{quote} on one hand it seems like a lot of fracking has been shut down which should help to stabilise prices but still this doesn't sound very optimistic with storage filling up. so not entirely clear to me whether the price will go up in coming weeks or down It seems that some of the producers in Texas were selling for $2 a barrel and couple of them paid buyer to take oil of their hands. But that's probably very small proportion of them. How can WTI trade in 20's if they are selling for less than $10. I know its the futures price that is in 20's,...
That's the million dollar question what everybody is trying to find out.

There are different blends of oil suitable for many applications each having their own quality and price of course.

More info https://en.wikipedia.org/wiki/List_o...e_oil_products
persistence and determination alone are omnipotent
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