US OIL

[Guest Oil price]

Today's oil price is -31 USD but I can only buy oil (US Crude) priced at 21.5 USD using spread bet account.  What's happening?

Where is this confusion coming from? 

 

 

[Guest Maxplus]

Hi.

I am really confuse.  REal time price is -38USD but quoted prices by IG is +21USD.  

What's happening?  

I am thinking of purchasing June contract.

[Maxplus]

Hi

Real time price for US Crude is -$35 but quoted price on IG index is +21 USD. What is happening?

[Caseynotes]

Spot (DFB), June and July Futs charts;

[CharlotteIG]

This article might be useful: https://www.ig.com/uk/news-and-trade-ideas/historic-price-crash-in-oil-takes-prices-briefly-below--0-200421

 

[Caseynotes]

IGSquawk  @IGSquawk

10m

Oils update: #Oil - WTI (JUN) 2042 +0.59% #Oil - WTI (JUL) 2592 -0.12% #Oil - Brent (JUN) 2362 -7.66% #Oil - Brent (JUL) 2754 -5.91% #Gasoline 6587 -7.12% #London Gas Oil 263 -4.61%

[DeltaHedge]

Hi, can someone confirm where IG settles Oil options, where would the May oil option have settled if held a 1500 PUT. would it have settled at -3700?  Thanks

[dmedin]

42 minutes ago, Caseynotes said:

Oils update: #Oil - WTI (JUN) 2042 +0.59% #Oil - WTI (JUL) 2592 -0.12% #Oil - Brent (JUN) 2362 -7.66% #Oil - Brent (JUL) 2754 -5.91% #Gasoline 6587 -7.12% #London Gas Oil 263 -4.61%

Too many numbers .. brain hurts

[dmedin]

Trading is for the big boys so if retail punters take part they should expect to get sh@fted (and upwards of 70% of them were long on oil yesterday evening hahahaha)

Traders could not give away West Texas Intermediate overnight after a storage squeeze turned holders of the contracts expiring later on Tuesday to forced sellers.

https://uk.reuters.com/article/us-global-markets/crude-costs-money-again-after-shock-crash-stocks-stay-in-doldrums-idUKKBN223001

Edited April 21, 2020 by dmedin

[Caseynotes]

15 minutes ago, dmedin said:

Traders could not give away West Texas Intermediate overnight after a storage squeeze turned holders of the contracts expiring later on Tuesday to forced sellers.

 

13 hours ago, Caseynotes said:

Oil becomes a liability when there is nowhere left to store it 😳

 

[Caseynotes]

Trading Floor Audio

@TradeFloorAudio

 

World Biggest Oil Storage Firm Says Almost All Space Sold ... BBG The world’s biggest independent oil storage company said that space for traders to store crude and refined fuels has all but run out #OIL #OOTT bloomberg.com/news/articles/…

[dmedin]

70% of IG clients are long on this market

🤣

 

Imagine a) being wrong, b) losing sh!t tones of money AND c) paying massive amounts of interest.  OUCH!

Edited April 21, 2020 by dmedin

[Caseynotes]

IG spot falls to weekly pivot S3 17.38

[dmedin]

Oh dear, when will retail traders wake up and smell the 'truth' about trading ...

[Caseynotes]

Just now, dmedin said:

Oh dear, when will retail traders wake up and smell the 'truth' about trading ...

what, you mean that it's a two way auction and that prices can go down as well as up, well I never. If only someone had said something. er, but I did in reply to your very first post on the forum, remember?

[dmedin]

1 minute ago, Caseynotes said:

what, you mean that it's a two way auction and that prices can go down as well as up, well I never. If only someone had said something. er, but I did in reply to your very first post on the forum, remember?

When will they realize that they are so consistently wrong that one of the strongest indicators is to bet against them when they have a very strong majority opinion 🤣

[Caseynotes]

In truth any system only needs to be right 50% of the time so long as risk is capped and reward able to run twice as far.

[chuckiegibbs]

Does anyone know the final closing price that they were executed at for the May WTI Oil contract?  Trying to see if my execution price at another broker was fair (i held it until expiration).  Thanks

[dmedin]

7 minutes ago, Caseynotes said:

In truth any system only needs to be right 50% of the time so long as risk is capped and reward able to run twice as far.

I've heard that some people use technical analysis so badly that they would have better odds by rolling a dice. 

People who are consistently losing (the majority of all retail traders) certainly don't have an 'edge', and I'm sceptical that they will improve over the years - imagine losing money for years on end with nothing to show for it.  Wow.

[Level_Trader]

I'd imagine the investment banks are also going to take a hit from this? ...they are providing hedges for oil producers..

[dmedin]

5 minutes ago, Level_Trader said:

I'd imagine the investment banks are also going to take a hit from this? ...they are providing hedges for oil producers..

Oh yes, and probably brokers like IG too - they will be keen to pass as much of the costs on to clients as they can.

[Caseynotes]

18 hours ago, GCC said:

Hi, I have checked both May, June & July future's charts. Only May future chart reflect current market price (below US$6 as of now, but not open for trade). Whereas charts for June & July future are not reflecting current market price. How can I trade current market price for US Crude?

Hi, it's the term 'current market price' that's the problem. The current market price for IG's May, June and July futures contracts are as on IG's charts which are tracking the underlying exchange prices for those respective futures contracts.

A bigger problem is the Spot price used for the Daily Funded Bet chart. For non brokers displaying prices such as Tradingview or Marketwatch they are simply using the front futures prices (May) for their spot charts but brokers who need to not only to give prices but to actually fill orders such as IG or FXPro they need to consider liquidity in the market so instead of just using the front futures contract as the underlying they instead use a calculation based on the 2 most liquid futures contracts.

The 'current market price' you were referring to was the May futures price but as you found that market was closed to open any trades because it was nearing expiry.

 

[dmedin]

10 minutes ago, Caseynotes said:

The 'current market price' you were referring to was the May futures price but as you found that market was closed to open any trades because it was nearing expiry.

Looks like retail clients are going to have to be a lot more careful before placing bets in future ...

[Caseynotes]

The big Oil ETFs under pressure now,

Dominic Gluchowski @Dom_Gluchowski

"Many retail investors are going long on #USO and other oil ETFs without understanding the risks of contango. On the 5th of May many ETFs will start rolling over their remaining June #oil futures to the July ones. This time the new game of musical chairs might start much earlier."

IGSquawk  @IGSquawk

6m

USO halted pending news!!!! #Oil

WTI (JUN) 1463 -27.94% #Oil -

WTI (JUL) 2233 -13.93% #Oil -

Brent (JUN) 1989 -22.23% #Oil -

Brent (JUL) 2450 -16.3% #

Gasoline 6041 -14.82% #

London Gas Oil 238 -13.5%

[dmedin]

Hoorah!  lots of misery, job cuts, ruined livelihoods and all the other good stuff.

Time for socialism folks!

[Crush1884]

Inflation adjusted oil price at its lowest since 1870 🤔

[Sunilpathak]

Why ig price for crude is so different from actual spot price. Is it IG scam?

[22fdunst]

Evening. Quick question on US Crude DFB. Can the price get lower than $0 as happened with the futures prices yesterday? I suspect not but looking to buy and trying to calculate the downside risk. Relatively new to this so sorry if some of the language is incorrect...

[Guest IG US CRUDE]

Am I right in thinking the price used on IG Spread Bet for USCrud is a blend of roughly 92% front contract and 8% next month contract? Does this ratio adjust per day as we go through the month? 

[Eva]

I am also interested if the spot price on WTI contract - i.e. Oil - US Crude ($10)  can go negative?