Entries Tagged 'oil futures trading' ↓

Hi,
I am new at trading commodity. for example, if I buy crude oil future for the month of May 08 @ $110 per barrel..future is for
100 barrel.what would happen

1. if price wont move above $100..is that mean the initial margin I have put to buy the future will be gone ?

2.or that initial margin amount will carry forward to the next closing month?

3. or that future will become worthless,and I will lose my money?
ok,
thank you both for your answers.I really appreciate it…
how about those mini futures on CBOT..i i wanna trade them,and take physical delivery? would it be still much risky ?

I mean if i buy a precious metal mini future from CBOT,and take physical delivery? since I have a buyer for those metal? is it profitable,and safely to do so? please write me back

thank you
have a nice day

i was looking for a calculation to get a “spot price” from the future price traded on nymex,but i could’t find one,so plz help me if any one has the answer

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The trading system in future market should be revisited in order to find means to moderate the volatility in the price of oil futures that has resulted in widespread game of speculation by traders.

there is a huge push for the Petrocurrency shift from dollar to Euro, so that oil trading in very near by future will happen in Euros, thus giving an indication that the U.S dollar will crash and the U.S economy will be in serious jeopardy, Could any one throw some light on this perspective.

I have been working as a proprietary trader for several years both at the CME and the CBOT. I have several years experience trading US treasuries and Treasury futures. For the past two years I have been trading crude oil and other distillate products. I am starting to have several stress related health problems and am thinking about a career change. Any former prop traders have a success story about life after trading?
Bullet B: Im one of the guys you see screaming and yelling in those bad jackets when they show the pits at the Chicago Board of Trade

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However, this system started to become ineffective since the year 2004 when the prices of oil traded on futures markets got increased uncontrollably.

Feds Probe Possible Oil Price Manipulation
Federal regulators are six months into a wide-ranging investigation of U.S. oil markets, with a focus on possible price manipulation.

The morning news is reporting the CFTC (Commodities Futures Trading Commission) has been investigating speculatalors.

What if anything do you thing this will have on the price of oil? And have you noticed the price of crude oil has been dropping and yet the price at the pump has remained constant?
http://www.topix.net/us/2008/05/feds-probe-possible-oil-price-manipulation

http://business.blogs.cnn.com/2008/05/21/whos-to-blame-for-high-oil-prices/
This morning’s oil price is $124.67 a barrel
http://www.indianagazette.com/index.php?option=com_content&task=view&id=28223&Itemid=124

If the recent run up on oil company stocks is caused by momentum, what are the chances that prices will fall once the exuberance is over?

(yahoo finance 10-17)
Many analysts believe speculative investing is the real culprit behind oil’s 11 percent rally over the last week, arguing that supply and demand fundamentals do not support prices near $90 a barrel. Traders see technical signs in the differences between current and future oil contracts that suggest money continues to be plowed into oil futures. Those signals spark new buying that pushes prices even higher.

“I think the market has been trading on momentum,” said Antoine Halff, head of energy research at Fimat USA LLC.

The fear is that the US economy is about to crash because of subprime lending problems and abusive lending practices. Crude oil Prices are at an all time high trading in the 75-78 US dollar per barrel range (I barrel =42 US gallons).

NEW YORK (Dow Jones)–Crude oil futures rose to a record Tuesday, shrugging off a planned boost in oil production from OPEC as traders focused on depleting U.S. oil inventories and signs demand may increase.
The front-month October light, sweet crude contract on the New York Mercantile Exchange rose 74 cents, or 1%, to $78.21 a barrel, the highest-ever settlement for a front- month contract. It was the contract’s seventh straight gain. Brent crude on the ICE futures exchange rose 96 cents to $76.43 a barrel.
The Organization of Petroleum Exporting Countries agreed to boost daily oil output by 500,000 barrels from Nov. 1 in a move that raises the cartel’s breached quotas by 1.4 million barrels a day. Despite the boost being above expectations, traders believe that global crude markets will remain tight.
“The market is basically saying that the OPEC hike is just not going to be enough, with demand continuing to grow,” said Tom Bentz, an analyst and broker with BNP Paribas Futures in New York. Bentz said an expected cut in U.S. interest rates next week is being translated as good for crude oil demand.
OPEC’s move created some confusion among traders, who were expecting the cartel to announce an increase in quotas of between 500,000 and 1 million barrels.

09102007

OK. You can currently buy crude oil futures contracts expiring in January 2010 for $71.92. Since, by then, the new Democratic administration will have exposed the Republican-backed scheme allowing oil companies to prop up their own futures prices, oil will be trading at about $20/barrel again. So buy the put options and pocket $50 bucks per contract! I swear, if I had any extra money I’d do it (though I might buy the 2011 or 2012 contracts. Us Dems ain’t that smart you know. Might take the new administration a few years to figure out the obvious).
You know people, either I’m right or I’m wrong. But I am aware of all the factors that drive oil prices, and I am aware that the current price spike, which began in earnest in 2002, appeared from no where and will fade to no where. Statistically, it can easily be argued that it (the spike) is a pure artifact of human manipulation of the futures markets. Whenever any scam is going on, there are always all kinds of ignorant analysts and apologists who want to sound smart by talking up the excuses. Anyone remember the NEW economy of the dotcom era? Anyone remember how the NEW economy was replacing the anachronistic economics laws of the OLD economy? Anyone remember all that bull? The excuses for the surrent spike in oil prices are pure bull as well. It’s all simple manipulation of the futures markets. Exxon/Mobil has enough money to do it and so does the US government. Which is responsible? I don’t know. Probably both…