What a crazy year for oil, everybody know..
Well, it's almost christmas time, and the premium between USOil and UKOil went negative just from a few days.
What i mean, the spread between the two, the price-difference, it usually fluctuate between 2-3usd (200-300 pips), the UKOil is a few dollars more expensive than the USOil.
Anyway, now that the USOil is slightly more expensive than UKOil, it is indeed a great arbitraging opportunity, in other words, BUY UKOil and SELL USOil, the trade is low-risk di per se as we don't care what the oil will do, it is somehow hedged.
Plus, in a few days there are 200-300 pips to be done, and with a good leverage it can be something.
Just wanted to share this trading idea as a merry christmas!
Image below.
Well, it's almost christmas time, and the premium between USOil and UKOil went negative just from a few days.
What i mean, the spread between the two, the price-difference, it usually fluctuate between 2-3usd (200-300 pips), the UKOil is a few dollars more expensive than the USOil.
Anyway, now that the USOil is slightly more expensive than UKOil, it is indeed a great arbitraging opportunity, in other words, BUY UKOil and SELL USOil, the trade is low-risk di per se as we don't care what the oil will do, it is somehow hedged.
Plus, in a few days there are 200-300 pips to be done, and with a good leverage it can be something.
Just wanted to share this trading idea as a merry christmas!
Image below.