Hello guys,
Get mail from broker:
We usually calculate the price for WTI crude oil spot CFDsusing the front (near) month underlying futures price. Due to the disorderly market, and the extraordinary settlement of the underlying May 2020 futures contract, instead of using the June 2020 contract as the basis for calculating our WTI crude oil spot CFD prices, we have decided to use the December 2020 contract, which we deem is less sensitive to current imbalances in the oil markets.
As there's a longer period between the present day and the last trading day of the December 2020 contract (November 19th, 2020), after the sharp drop on the May futures expiration our WTI crude oil spot CFD prices will gradually converge to December 2020 contract prices at a more moderate pace than if we were basing our WTI spot CFD on a contract with an earlier expiry. The extent of the daily fluctuations in our spot price CFD products and December 2020 contracts will be similar on a percentage basis, rather than on a dollar-to-dollar basis.
Guys, how do you think spot price 8dol reaches decembers prices 28dol, how they calculate it?
Get mail from broker:
We usually calculate the price for WTI crude oil spot CFDsusing the front (near) month underlying futures price. Due to the disorderly market, and the extraordinary settlement of the underlying May 2020 futures contract, instead of using the June 2020 contract as the basis for calculating our WTI crude oil spot CFD prices, we have decided to use the December 2020 contract, which we deem is less sensitive to current imbalances in the oil markets.
As there's a longer period between the present day and the last trading day of the December 2020 contract (November 19th, 2020), after the sharp drop on the May futures expiration our WTI crude oil spot CFD prices will gradually converge to December 2020 contract prices at a more moderate pace than if we were basing our WTI spot CFD on a contract with an earlier expiry. The extent of the daily fluctuations in our spot price CFD products and December 2020 contracts will be similar on a percentage basis, rather than on a dollar-to-dollar basis.
Guys, how do you think spot price 8dol reaches decembers prices 28dol, how they calculate it?
Buddy you need a new broker asap.