Oil

[Rym]

Why is oil 25.00 Per share on ig markets , but on the other brokerage they are 19.00 per share? Anyone knows 

[NiL16]

1 hour ago, Rym said:

Why is oil 25.00 Per share on ig markets , but on the other brokerage they are 19.00 per share? Anyone knows 

Spot price vs  Futures

[Guest PassiveIncome666]

1 hour ago, Rym said:

Why is oil 25.00 Per share on ig markets , but on the other brokerage they are 19.00 per share? Anyone knows 

25.00 is the spot oil price an aggregation of May & June futures contracts

19.00 is the futures price which ends on the 20th May

Both prices should be in your panel - At the to where it says 'Oil -US Crude' just to the left of that is spot price or the futures price. Both are available for trading. 

Hope that helped 😏

[Rym]

That makes no sense for the last three days oil has been $19.00 to $21.00 but ig markets was $24.00 to $25.00 per share, that's a four dollars of a difference, and when you buy to buy and it goes down to the actual share market price it closes you out because you don't have enough equity. 

[Caseynotes]

8 hours ago, Rym said:

Why is oil 25.00 Per share on ig markets , but on the other brokerage they are 19.00 per share? Anyone knows 

 

7 hours ago, NiL16 said:

Spot price vs  Futures

That's correct, you are looking at the difference between spot ($25) and the May futures price ($20) but just to add, many brokers (IG, FXPro etc) use the 2 most liquid futures contracts as the underlying for their spot price but other agencies just use the front futures contract (May). The June futures contract is currently around $26.

 

[Rym]

aaa ok I understand now thank you, 

[Raytheon]

4 hours ago, Caseynotes said:

 

That's correct, you are looking at the difference between spot ($25) and the May futures price ($20) but just to add, many brokers (IG, FXPro etc) use the 2 most liquid futures contracts as the underlying for their spot price but other agencies just use the front futures contract (May). The June futures contract is currently around $26.

 

I do not understand your explanation - You say: "... use the 2 most liquid futures contracts as the underlying for their spot price but other agencies just use the front futures contract (May). The June futures contract is currently around $26."

Points 1-5 below = my understanding on contract dynamics, points 6-8 below = my observations that point to a very serious fixable problem on the IG platform (Pricing transparency), and although it is by no means alone in that, there may be an FCA issue here:

1. The 2 most liquid futures WTI Oil contracts right now (and for some weeks) are May and June 2020.

2. The May futures contract expiration date is April 21 with first notice on April 23 - May options contracts expired yesterday (April 16).

3. May was the NYMEX recognised "continuous contract in front" until its options contract expired (yesterday at 21:59 GMT equivalent - being 5 calendar days ahead of futures contracts expiration on April 21). June is the NYMEX recognised "next continuous contract in front" – so, when the May options expired on April 16, June took its place as the front (most liquid) month, with July stepping in place of June as the next continuous in front.

4. While May options are expired and futures are NOT, May and June contracts remain the most liquid contract months on NYMEX for WTI Crude. When May futures contract expires on April 21 (next Tuesday), then most liquidity will have transitioned to June and July.

5. However, what needs to be carefully noted here is that, as the May came off the “front” month yesterday with its options expiration and June moved to “front”, whereas as May price remained subdued overnight, both June and July futures prices gapped-open by 30+%.

With the above understanding in mind, I now turn to your comments:

6. Although you correctly say the June contract "is around $26" (as at circa 07:00 GMT), significantly you omit to point out that at 21:59 GMT last night the May futures closed out at $19.75 - the continuous price gap opening at 23:00 last night on June was $26.42. That in fact is the roll between  May and June, as June became the front month continuous contract and July rolled into June’s prior position as the second in front continuous - it was NOT due to some big news event.

7. At the same time as events highlighted at 6. above, IG closing price was $25.409 (21:59 GMT last night) with opening price at $25.924 at 23:00 last night against the June opening price at $26.42 - a discount (backwardation) to the most liquid contract month and when July futures is at a premium (contango) to June futures as well!.

8. From 6 and 7 above, it will be clearly seen that whereas NYMEX June continuous gapped almost 32% between Thursday's close and Friday's opening (i.e. 19.75 to 26.42) and alongside July continuous (next in front), IG's price did not - it was up 51 points (2% - 25.92-25.41) because it was ALREADY computing prices in some other way, and it certainly was not on the June (most liquid) and July months. For example, whereas as June Futures closed at $25.44 (having put in a yet untouched low of $24.93) at 19:59 yesterday and at $25.77 at 10:59 today, IG price closings at the same times respectively were $24.50 (low 24.39) and $24.95 – being at a discount on the June futures of 94 points and 82 points, deducing a further uncertain variable between price discovery time intervals for IG customers.

In summary, we simply must have an explanation and full transparency on how IG calculates its prices from WTI Crude. With all due respect, your replies here and elsewhere on the matter simply do not do that, and for the reasons clearly set out above.

For that reason, this post has also been sent via customer email to IG. I will post their reply here when I get it. I believe there are 2 ways IG can legitimately reply on this – either (i) give a full explanation with formulas on how IG Platform Crude Oil prices are computed so the customer may make informed commitment decisions on its platform, or (ii) provide fully downloadable price data access to customers on its published prices so customers may do their own analysis. Without either, the customer is at a loss for sheer lack of reasonable PRICE TRANSPARENCY. Kindly note, IG is by no means the only provider who prices in this way on instruments, but unlike most others is much more professional – I hope that is borne out by their reply to this as well. Thanks.

[Rym]

But futures has an expires data for the 20may or June, I’m looking to buy and keep it for in around 6 months, for example if I use plus 500 I can buy and keep the trade open and they are working on live pri

 

[Caseynotes]

5 minutes ago, Rym said:

But futures has an expires data for the 20may or June, I’m looking to buy and keep it for in around 6 months, for example if I use plus 500 I can buy and keep the trade open and they are working on live pri

 

not sure which contracts plus 500 offer but suspect they are just auto rolling them over the same as IG do.

see this thread for how to enable auto rollover ;

[Caseynotes]

3 hours ago, Raytheon said:

I do not understand your explanation - You say: "... use the 2 most liquid futures contracts as the underlying for their spot price but other agencies just use the front futures contract (May). The June futures contract is currently around $26."

 

Points 1-5 below = my understanding on contract dynamics, points 6-8 below = my observations that point to a very serious fixable problem on the IG platform (Pricing transparency), and although it is by no means alone in that, there may be an FCA issue here:

 

1. The 2 most liquid futures WTI Oil contracts right now (and for some weeks) are May and June 2020.

 

2. The May futures contract expiration date is April 21 with first notice on April 23 - May options contracts expired yesterday (April 16).

 

3. May was the NYMEX recognised "continuous contract in front" until its options contract expired (yesterday at 21:59 GMT equivalent - being 5 calendar days ahead of futures contracts expiration on April 21). June is the NYMEX recognised "next continuous contract in front" – so, when the May options expired on April 16, June took its place as the front (most liquid) month, with July stepping in place of June as the next continuous in front.

 

4. While May options are expired and futures are NOT, May and June contracts remain the most liquid contract months on NYMEX for WTI Crude. When May futures contract expires on April 21 (next Tuesday), then most liquidity will have transitioned to June and July.

 

5. However, what needs to be carefully noted here is that, as the May came off the “front” month yesterday with its options expiration and June moved to “front”, whereas as May price remained subdued overnight, both June and July futures prices gapped-open by 30+%.

 

With the above understanding in mind, I now turn to your comments:

 

6. Although you correctly say the June contract "is around $26" (as at circa 07:00 GMT), significantly you omit to point out that at 21:59 GMT last night the May futures closed out at $19.75 - the continuous price gap opening at 23:00 last night on June was $26.42. That in fact is the roll between  May and June, as June became the front month continuous contract and July rolled into June’s prior position as the second in front continuous - it was NOT due to some big news event.

 

7. At the same time as events highlighted at 6. above, IG closing price was $25.409 (21:59 GMT last night) with opening price at $25.924 at 23:00 last night against the June opening price at $26.42 - a discount (backwardation) to the most liquid contract month and when July futures is at a premium (contango) to June futures as well!.

 

8. From 6 and 7 above, it will be clearly seen that whereas NYMEX June continuous gapped almost 32% between Thursday's close and Friday's opening (i.e. 19.75 to 26.42) and alongside July continuous (next in front), IG's price did not - it was up 51 points (2% - 25.92-25.41) because it was ALREADY computing prices in some other way, and it certainly was not on the June (most liquid) and July months. For example, whereas as June Futures closed at $25.44 (having put in a yet untouched low of $24.93) at 19:59 yesterday and at $25.77 at 10:59 today, IG price closings at the same times respectively were $24.50 (low 24.39) and $24.95 – being at a discount on the June futures of 94 points and 82 points, deducing a further uncertain variable between price discovery time intervals for IG customers.

 

In summary, we simply must have an explanation and full transparency on how IG calculates its prices from WTI Crude. With all due respect, your replies here and elsewhere on the matter simply do not do that, and for the reasons clearly set out above.

 

For that reason, this post has also been sent via customer email to IG. I will post their reply here when I get it. I believe there are 2 ways IG can legitimately reply on this – either (i) give a full explanation with formulas on how IG Platform Crude Oil prices are computed so the customer may make informed commitment decisions on its platform, or (ii) provide fully downloadable price data access to customers on its published prices so customers may do their own analysis. Without either, the customer is at a loss for sheer lack of reasonable PRICE TRANSPARENCY. Kindly note, IG is by no means the only provider who prices in this way on instruments, but unlike most others is much more professional – I hope that is borne out by their reply to this as well. Thanks.

 

My understanding of the commods pricing is from the IG web page;

https://www.ig.com/uk/commodities 

[Guest WeC]

Your oil positions would have been automatically rolled over last night to spot contracts. Not sure how the roll over works but all my positions were automatically closed and reopened at spot prices.

[WeC]

My contracts were automatically closed at $18.24 (futures) and open at $25.06 (spot). Futures closing price was $18.44 while spot closes at $25.14 when the market closes.

[Raytheon]

Caseynotes - Thank you for your prompt and helpful reply.

[Caseynotes]

3 minutes ago, Raytheon said:

Caseynotes - Thank you for your prompt and helpful reply.

👍

[Raytheon]

Caseynotes

Is it also possible to:

1. Trade SPOT US Crude on Spreadbet?

I note this comment above from "passiveincome666" last Thursday: "Oil -US Crude' just to the left of that is spot price or the futures price. Both are available for trading." But I cannot find SPOT on the panel ... clearly, I must be both blind as well as stupid. 

2. Is it possible to download IG Crude prices in (say) excel?

Thanks again in advance.

[Caseynotes]

10 minutes ago, Raytheon said:

Caseynotes

Is it also possible to:

1. Trade SPOT US Crude on Spreadbet?

I note this comment above from "passiveincome666" last Thursday: "Oil -US Crude' just to the left of that is spot price or the futures price. Both are available for trading." But I cannot find SPOT on the panel ... clearly, I must be both blind as well as stupid. 

2. Is it possible to download IG Crude prices in (say) excel?

Thanks again in advance.

yes, the spot chart is on the cfd and the sb platforms and should be the first chart that comes up when you click on US Oil from the menu, the futures chart options should be in click boxes after clicking on the down arrow next to the US Oil chart title. ( see pic below).

I think you can download prices via the IG API but would need to check.

[Raytheon]

Caseynotes

Thank you again for your guidance - truly appreciated.

On Downloadable prices via IG API - I can find nothing on that. Seems only the adapted same as Web/desktop (i.e. Charts, etc), which does not appear to have any "price" downlaodable facility at all much less in excel or as a .csv.

I'd appreciate if you would check as well, so I can be sure I have not missed anything on that.

Very many thanks and regards

[Caseynotes]

Just now, Raytheon said:

Caseynotes

Thank you again for your guidance - truly appreciated.

On Downloadable prices via IG API - I can find nothing on that. Seems only the adapted same as Web/desktop (i.e. Charts, etc), which does not appear to have any "price" downlaodable facility at all much less in excel or as a .csv.

I'd appreciate if you would check as well, so I can be sure I have not missed anything on that.

Very many thanks and regards

I don't use the API myself but this 'how to' video on downloading historic data from IG onto excel should help;

 

[Raytheon]

Caseynotes

Very many thanks for this - watched video, most helpful.

I will revert back to it later in the week to upload API for data download and backtesting.

Just one thing to note perhaps: video presenter uses daily+ data in demo on FTSE, so it's not clear to me yet if intraday data for backtesting is also available. I will confirm either way later in the week as I expect that will be helpful for others to know in advance as well.

Your feedback in promptly replying to my questions with constructive directions has been fab - Thank you ... truly very much appreciated!

[Caseynotes]

12 hours ago, Raytheon said:

Caseynotes

Very many thanks for this - watched video, most helpful.

I will revert back to it later in the week to upload API for data download and backtesting.

Just one thing to note perhaps: video presenter uses daily+ data in demo on FTSE, so it's not clear to me yet if intraday data for backtesting is also available. I will confirm either way later in the week as I expect that will be helpful for others to know in advance as well.

Your feedback in promptly replying to my questions with constructive directions has been fab - Thank you ... truly very much appreciated!

you are very welcome and thank you for the kind words.

[andysinclair]

On 20/04/2020 at 12:06, Raytheon said:

2. Is it possible to download IG Crude prices in (say) excel?

I've built an Excel Add-in which enables you to easily download historic IG market data into Excel. You can specify the resolution of the data, minute/hour/etc:

https://www.excelpricefeed.com/userguide/historic-data-download-ig-index

Please be aware that due to IG restrictions you can only download 20,000 historic datapoints per week.

Hope this helps.

[Pmelb]

Also, you can get an Excel based Streaming API from IG Labs itself and its free.  Doesn't have all the bells and whistles of andysinclair's version, but is functional enough and you can modify it to suit what you want.  

Here: https://labs.ig.com/sample-apps