Jump to content

US OIL


Caseynotes

Recommended Posts

  • Replies 212
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Can't add to the recently restarted US OIL thread now so start anew again.  "Oil has been showing some signs of "hope" over past 24 hours. Given the fact oil and Chinese CSI 300 move in tandem, m

This just out: CHINA'S ICBC SAYS TO SUSPEND ALL OPEN POSITIONS ON FUTURES PRODUCTS LINKED TO CRUDE OIL, NATURAL GAS, COPPER AND SOYBEANS AS OF 0900 LOCAL TIME ON APRIL 28

forgive the noob Q's but will the spot chart drop to match the actual oil price at sub $8 at open and liquidate a position from the IG price at $22? Sorry just trying to understand, new to this

Posted Images

On 22/04/2020 at 10:24, CharlotteIG said:

In terms of calculating margins, it is calculated as the higher of (1) 5%, or (2) 80 points times the positions.

For example, if you have one contract on US Crude Oil, then the result at a price of 1394.4 would be calculated as such (1) 10 x 1394.4 x 5% = $697.20, and (2) 80 x $10 = $800. The higher value in this example is $800, which would be the margin in this example.

Hi @CharlotteIG, I've just found this post. The calculation is really helpful, but my question is what number should I put in these formulae for a 0.25 position (the minimum size) in the US Crude 1 euro contract. If I replace $10 with .25 euro I get (1) .25 x 1800 (roughly, at present) x 5% = 22.5 euros and (2) 80* 0.25 = 20 euros. The dealing ticket asks for 45 euros margin which is double (1) and so I'm assuming that calculation is wrong and should use 10% not 5%. BUT, why does the "information" tab say the margin requirement is 80%? Is it about to go up 8 times at 4pm? Because the numbers don't seem to be consistent I'm feeling nervous about what logic has actually been put into the computer system, and what will actually happen to my free capital at 4pm.

Link to post

image.png.30a95a40cedec487d84bce4cb9506eb6.png

This is the message someone relieved and posted on the forum yesterday that I responded to, it says about the 80 points x size or increase to 5% but no mention of 80%

why the deal ticket says the margin factor is 80% instead of 10% but then calcs margin at 10% is a mystery.

  • Like 2
Link to post

@Caseynotes Thanks for mentioning that you'd posted about this on another thread. That led me to @CharlotteIG 's worked example.  Yes, that's the email I received and was questioning. By now, my only real worry is what changes they've made to the code that will kick in at 4pm! Just hoping whatever variable is being displayed in the "margin" field (80%) isn't the same one that'll be picked up by the new calculation!

I've had odd things happen on occasion like a minimum stop distance that I'd expect to be about 5 points suddenly expanding when the market gets illiquid to something bizarre like several thousand followed by about 8 decimal places. I have every sympathy with what a nightmare this must be for anyone trying to keep the system functional through all this - just don't want to get on the wrong side of the changes!

  • Like 1
Link to post

yes I perfectly well understand your concern, I'm fairly certain it is for professional clients and have seen them before as there is usually a rumble of complaints on the forum about having to stump up 3 or in this case 5% instead of the usual 1.3%. However, over little misunderstandings do real damage so hopefully IG will respond, though nearly 4pm now. screenshot everything is the best I can think of.

  • Like 1
Link to post
8 minutes ago, Caseynotes said:

screenshot everything is the best I can think of.

If you're dealing in serious sums of money you should be capturing all your trading by taking video output, e.g. with a utility like Snagit.  Far too tedious to take screenshots all the time.   www.snagit.com

Edited by dmedin
Link to post
3 minutes ago, dmedin said:

If you're dealing in serious sums of money you should be capturing all your trading by taking video output, e.g. with a utility like Snagit.  Far too tedious to take screenshots all the time.   www.snagit.com

good advice but there's only 6 minutes til 4pm?

Link to post
11 minutes ago, CharlotteIG said:

This just out: CHINA'S ICBC SAYS TO SUSPEND ALL OPEN POSITIONS ON FUTURES PRODUCTS LINKED TO CRUDE OIL, NATURAL GAS, COPPER AND SOYBEANS AS OF 0900 LOCAL TIME ON APRIL 28

Is that good or bad? :(

Link to post
12 minutes ago, dmedin said:

Is that good or bad? :(

China Bank warning to clients;

The bank also warned investors of a possible loss of all investments or cash deposits in those products due to commodities market volatility

Barbara Vacher @Barbra_IG

58s

  • Sad 1
Link to post
9 minutes ago, funkyfred said:

if i am short spot US Oil thru 10 pm does that mean I will receive these huge fees that people are complaining about getting charged on the long side?

possibly, generally you pay interest when long and receive it when short but that is not automatic, if any of the factors within the calc is a negative instead of a usual positive then the whole thing gets turned around. So shorts may end up negative and longs positive, see below 

image.png.b101cd9c701162e03c37e2f11e51dd05.png

 

Link to post

Hi all just looking for a bit of help regarding the fees acquired for holding long term currency positions? for example on GBPCAD the spread is 12 and is rollovered every quarter....doe this mean for one year it would cost €96 per point to hold the position for 12 months? seems very expensive. any help advice on this would be very much appreciated.

Eg: buy at spread 12 and sell at 12 = 24 / Quarter ?

thanks

Link to post
20 minutes ago, Jossy said:

Hi all just looking for a bit of help regarding the fees acquired for holding long term currency positions? for example on GBPCAD the spread is 12 and is rollovered every quarter....doe this mean for one year it would cost €96 per point to hold the position for 12 months? seems very expensive. any help advice on this would be very much appreciated.

Eg: buy at spread 12 and sell at 12 = 24 / Quarter ?

thanks

Hi, no, so when buying a Forward (FX Future) you buy the ask price, on rollover the position is closed at the bid price so you have paid the spread (the difference between the ask and bid). On opening the next contract you pay the ask price again, IG did used to also give a discount for rollovers but not sure if still do.

Link to post
2 hours ago, Caseynotes said:

Hi, no, so when buying a Forward (FX Future) you buy the ask price, on rollover the position is closed at the bid price so you have paid the spread (the difference between the ask and bid). On opening the next contract you pay the ask price again, IG did used to also give a discount for rollovers but not sure if still do.

ok thanks for your reply. so every time the roll over happens i will only have to pay the spread once?

Link to post
Guest Suresh
4 hours ago, Caseynotes said:

Spot and Futures charts;

image.thumb.png.ed7880389fe8acd63d7f7b186421a32c.png

Hi ,

thanks and If I am long July oil do I need to pay interest adjustment every night . I hope not but want to check ?

thanks 

Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • General Statistics

    • Total Topics
      13,656
    • Total Posts
      68,264
    • Total Members
      57,144
    • Most Online
      5,137
      14/01/21 09:51

    Newest Member
    ichimaru8989
    Joined 17/01/21 22:50
  • Posts

    • I'll try to be concise: Dent was in 2010 calling for the mother of all stock market crashes - so were Elliott Wave International in fact EWI have been call for a massive collapse since 1986!  Some of what he says is accurate - deflation for example - the reason QE has not caused inflation is because it was issued in a deflationary cycle The crash he talks about won't happen - I listened to dent and EWI back in 2010 and I choose to do my own research as other things i was investigating suggested the opposite to what they were both spouting Read my Time Cycles page, it explains the deflationary/inflationary cycles - proven with 220+ years of stock market history behind the reasoning The deflationary cycle he refers to ended late 2016, its now inflationary according to my calcs and research and my prediction is stock market is going upwards until the mid 2030's when it will crash and top out - yet Dent still thinks its in play Up until then we might get a 1987 style crash event but overall the corrections will be modest not massive and they will all be quickly surpassed I don't listen to anyone out there - I trade independently according to my methods so I don't need to be buying and holding and if I'm wrong so be it - it won't affect my trading as the market dictates my positions, not my expectations - since 2010 this has work exceptionally well, where if I'd of followed EWI and Dents forecasts I'd of lost everything in 2010! I've no thoughts on Gold other than it is inflationary hedge - as mentioned on another thread when the stock market is inflationary (which I think started 2017) then price correlation backwards to last time it was inflationary (1982-2000) gold was subdued    
    • Thanks @Caseynotes. Do you think the time of the daily close bears any significance. When viewing the hourly charts, the volume and movements seem to be higher in GMT "working hours" and then slow down overnight. Therefore, are other countries trading on GMT I wonder?
    • Saw a snippet on Sky news complaining that the Lateral Flow test must be faulty because it wasn't picking up as many positives as the PCR. Quite an unbelievable misinterpretation of the data on the number of false positives made by the PCR. Not surprising really as the fake positive numbers generated by the PCR are the only thing driving project fear and lockdowns. Meanwhile, in order to stem the flow of staff needing to self isolate following a PCR false positive the NHS are switching to ...  er, the lateral flow test.         Dr Clare Craig  @ClareCraigPath Deaths are not climbing commensurate with cases. Either COVID got less deadly (despite inc hospital admissions) or we have two measure a) a community positive rate off the charts with false positives b) a hospital rate (likely to inc some real COVID) which is at a steady state     .
×
×
  • Create New...