Jump to content
  • 0

Daily Commodity Interest


Guest A_test

Question

Guest A_test

Hi all,

I would just like to understand more about Daily Commodity Interest. I understand that depending on what side of the futures curve the current spot price is you will be credited or debited.

But what side should the futures price be in relation to the current spot price in order to be credited?

How are these futures prices decided and can it alternate between being above and below the spot price?

Can I be debited one month because the spot price is below/above the futures price and then the next month be credited because the spot price is on the opposite side of the futures price (or is the futures price of a particular commodity always above/below the spot price, if so does this mean that when I always sell/buy a particular commodity I will be credited/debited for sure?)?

Thanks a lot for your time. Sorry for complex questioning, I am new to spread betting.😀

Link to comment

5 answers to this question

Recommended Posts

  • 0
Guest PandaFace

Yeh easiest way to see is check next futures and if further away is higher you’ll likely be debited. BUT depends on steepness. Also it really is zero sum as movement along the curve with profit and loss on the open position off set it. 

Link to comment
  • 0
Guest backwardation

@PandaFace If I want to scalp oil during the day, but don't intend to have the position open at end of the day, is it better to use spot than futures because of the spread?  Or does it all equal-out somehow?

Do futures have wider spreads than spots on all brokers, or is this an IG quirk?

Link to comment
  • 0
On 13/06/2019 at 19:53, backwardation said:

@PandaFace If I want to scalp oil during the day, but don't intend to have the position open at end of the day, is it better to use spot than futures because of the spread?  Or does it all equal-out somehow?

Do futures have wider spreads than spots on all brokers, or is this an IG quirk?

It would be financially advantageous to use spot in this instance as the spreads are smaller. You'll generally find that the further out you go the larger the spreads irrespective of the broker as the market is less liquid. With IG we also incorporate funding into those longer dated futures as you're borrowing funds to maintain the position for a longer time period as well. 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Demo account: Please note that conditions on demo accounts may differ from real accounts. Some brokers may only provide overnight loans on real accounts and not on demo accounts.
    • Swap Rate: Check the swap rates for your open positions. Overnight loans are calculated based on the difference between the interest rates of a currency pair, and if the difference is small or negative, you will not receive a loan.
    • Civic (CVC) emerges as a game-changer in the realm of identity verification, offering a secure and decentralized solution for payment verification between "Identity Verifiers" and "Identity Requesters" within the Civic ecosystem. With its innovative approach and recent developments, Civic is making waves in the cryptocurrency market Payment Verification: Civic's primary use case lies in facilitating payment verification between parties within the Civic ecosystem. By leveraging blockchain technology, Civic provides a secure and transparent method for verifying identities and ensuring trust in transactions.  Integration with Solana Token Extensions: Civic's recent announcement on X revealed that Civic Pass is now integrated with Solana Token Extensions, further enhancing its utility and interoperability within the blockchain ecosystem. This integration opens up new possibilities for Civic's application and adoption.  Civic (CVC) is now listed on Bitget  and other CEX providing users with convenient access to trade and engage with the token. This listing further enhances Civic's visibility and liquidity, attracting new users and investors to the ecosystem. 
×
×
  • Create New...
us