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About oil trading

  • #21
  • Jun 1, 2012 2:48am Jun 1, 2012 2:48am
If the Middle east dosn't sell oil to US then there are going to be big crises in the US. Why? Because US is the biggest oil consumer in the world and if the biggest oil consumer dosn't get the oil its need to carry on its economy, then it can have very disastrous effect and yes for the note, US itself does have oil to meet its demand till certain extend but not to the full but the means to get this oil usable are not readily available.

But, Canada, US neighbor can always help with this, as it got great reserves of oil.
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  • #22
  • Edited Dec 30, 2012 10:18am Dec 27, 2012 9:16pm | Edited Dec 30, 2012 10:18am
ICE & offers Diesel futures and I am really interested in trading it.

Is there any way a retail trader can trade those? Trading directly via ICE is not an option since they require you to have minimum funds starting with 20 million dollars. Usually there are cfds for everything (gasoline, heating oil etc ...) but it seems like no one offers diesel futures or cfds.
Does anyone know of a broker who offers cfds or future on diesel?

http://www.bloomberg.com/news/2010-1...urals-oil.html

ISIN: XC0009677813
  • #23
  • Dec 28, 2012 8:42pm Dec 28, 2012 8:42pm
Diesel futures are going to replace HO in April 2013. You're looking at around $US7,000 initial margin per Diesel Future.
  • #24
  • Dec 30, 2012 9:47pm Dec 30, 2012 9:47pm
okay thanks for the information
  • #25
  • Mar 26, 2013 4:24am Mar 26, 2013 4:24am
Is there a way we can calculate the pip value of WTI and the other commodities?

As you know we can do the following calculation on fx pairs to find out the value of a pip (when USD quoted first) eg:
(0.0001 / exchange rate) x lot size = pip value

Can we do something similar to work it out for the other products?
  • #26
  • Mar 26, 2013 11:20pm Mar 26, 2013 11:20pm
With some commodities different brokers may have different contract sizes.

1 pip is equal to a 1 cent move per barrel.
That is 1 cent multiplied by contract size
With WTI, I think that nearly all will have a contract size of 1000 Barrels
So 1 cent x 1000 = $10 value per pip for 1 contract.
Please Do Not PM Me With Coding Enquiries
  • #27
  • Mar 26, 2013 11:37pm Mar 26, 2013 11:37pm
Quoting Gumrai
With some commodities different brokers may have different contract sizes.

1 pip is equal to a 1 cent move per barrel.
That is 1 cent multiplied by contract size
With WTI, I think that nearly all will have a contract size of 1000 Barrels
So 1 cent x 1000 = $10 value per pip for 1 contract.
Hi there Gumrai, thanks for you message most appreciated.
Do you know if this method can be used for other commodity products?
ie 0.01cent * contract size.
  • #28
  • Mar 27, 2013 2:06am Mar 27, 2013 2:06am
Quoting tom82
Hi there Gumrai, thanks for you message most appreciated.
Do you know if this method can be used for other commodity products?
ie 0.01cent * contract size.
It can to a degree.
Take wheat futures as an example
Contract size is 5,000 bushels
So a 1 cent move would be $50
But tick size with wheat is a quarter of a cent
So 1 tick is $12.50 per contract.

The best way to be sure is to open a demo with your broker, put a few trades with 10 pip TP and SL, see what the result is and divide by 10 to find the per pip value. If you can't get a demo, try with the smallest risk you can on a live account. Failing that, you could contact the brokers customer services and ask. Make sure that you are clear what the size of the pip is in cent terms. As with Wheat, you may ask what the value of 1 pip/tick is per contract, thinking that 1 pip is 1 cent and there may be misunderstandings

Many moons ago I opened a trade on a commodity (can't remember which) and found that the contract size was 10 times larger than with my other broker. Could have been a costly mistake, but suffered minimal loss.
Please Do Not PM Me With Coding Enquiries
  • #29
  • Mar 27, 2013 6:04am Mar 27, 2013 6:04am
Quoting Gumrai
It can to a degree.
Take wheat futures as an example
Contract size is 5,000 bushels
So a 1 cent move would be $50
But tick size with wheat is a quarter of a cent
So 1 tick is $12.50 per contract.

The best way to be sure is to open a demo with your broker, put a few trades with 10 pip TP and SL, see what the result is and divide by 10 to find the per pip value. If you can't get a demo, try with the smallest risk you can on a live account. Failing that, you could contact the brokers customer services and ask. Make sure that you are clear what...
Thanks for that. Do you know where I can get a list of the commodity products and their specifications contract sizes?

My broker mainly has forex WTI, gold, silver and a few equity indexes, so they only have a list for what they offer.
  • #30
  • Mar 27, 2013 6:19am Mar 27, 2013 6:19am
Quoting tom82
Thanks for that. Do you know where I can get a list of the commodity products and their specifications contract sizes?

My broker mainly has forex WTI, gold, silver and a few equity indexes, so they only have a list for what they offer.
I don't know if Barchart.com will have what you need.

http://www.barchart.com/futures/specifications.php
Please Do Not PM Me With Coding Enquiries
  • #31
  • Jul 25, 2013 12:26am Jul 25, 2013 12:26am
Are there high impact news events that are triggered on the dot such as in forex where the market moves in 1 direction? oil? gas? news for stocks..etc?
  • #32
  • Jul 25, 2013 8:16am Jul 25, 2013 8:16am
Quoting justin7
Are there high impact news events that are triggered on the dot such as in forex where the market moves in 1 direction? oil? gas? news for stocks..etc?
Yes, it moves in one direction but not the one you are in.
  • #33
  • Jul 25, 2013 8:18am Jul 25, 2013 8:18am
it was an honest question sir. I was curious if these happen in other areas of the entire market that I am unfamiliar with is all
  • #34
  • Jul 30, 2013 10:11pm Jul 30, 2013 10:11pm
for stocks there's no news but for commodities the news are very rare for exemple if a country is looking for buying gold it will be the moment to buy gold too
  • #35
  • Aug 14, 2013 12:10pm Aug 14, 2013 12:10pm
Use the FF calendar and click the graph icon, then try to match the graph against your chart to identify correlations.
With each conspiracy, i add a new layer to my hat.
  • #36
  • Aug 16, 2013 5:14am Aug 16, 2013 5:14am
Well, it is common knowledge that big events have an impact on the market behavior. I guess, in case of commodities, the news is very rare.
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  • #37
  • Aug 21, 2013 3:27am Aug 21, 2013 3:27am
it's a pretty broad question. imho hard to say that even the smallest changes in monetary policy do not drive the prices of commodities, but for somebody who is not a macroeconomist it is hard to identify these trends.

i recommend reading this article.
http://www.hks.harvard.edu/fs/jfrank...cesRBA2009.pdf
  • #38
  • Aug 19, 2015 11:51am Aug 19, 2015 11:51am
Hi
why did the Crude Oil Inventories news (USD) affect the CAD today?

thanks!
  • #39
  • Aug 19, 2015 5:11pm Aug 19, 2015 5:11pm
In a nutshell, it affected CAD because Canada is a major exporter of oil and its proven oil reserves are the third largest globally. Therefore, when oil prices are rising Canada's economy benefits, and vice versa when oil prices are falling. USD/CAD and crude prices have shared a negative intermarket correlation because of that.

USD Crude Oil Inventories surprisingly showed an unexpected buildup when the data was released. This oversupply of oil in the market caused oil prices to fall and that's why CAD also went down with it.

Hope that helps!
  • #40
  • Aug 19, 2015 5:50pm Aug 19, 2015 5:50pm
Quoting FXMasterSK
In a nutshell, it affected CAD because Canada is a major exporter of oil and its proven oil reserves are the third largest globally. Therefore, when oil prices are rising Canada's economy benefits, and vice versa when oil prices are falling. USD/CAD and crude prices have shared a negative intermarket correlation because of that. USD Crude Oil Inventories surprisingly showed an unexpected buildup when the data was released. This oversupply of oil in the market caused oil prices to fall and that's why CAD also went down with it. Hope that helps!
THIRD largest globally? Wow!! Didn't know Canada is the Saudi Arabia of North America. More diversification of economy is definitely needed here. It's not good that currency value is so heavily dependent on just ONE commodity.
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