5 VERY HARD CME Globex CL Crude OIl questions: 1-what do you do with "Bid" and "ask" wide spread issues for the various CL months?...meaning, dealing with large spread? and entering your spread trade?..how get to your advantage? 2-any advantage to entering spread when CME globex CL is cruising down or soaring? 3-how do you play the weekly wednesday EIA report at 10:30AM eastern with a spread trade? 4-do you execute your CME Globex CL spread trade when the normal pit traded nymex is trading or at night etc.??? 5-what is your average time to hold per CME Globex CL spread trade?..intraday, 1 day, 3 days, weekly etc.?
easy answer ... open up an account with MBFCC or one of the other top nymex clearing firms that has traders in the energy "pits" and perhaps consider the "pit" for executing spreads instead of globex
1-what do you do with "Bid" and "ask" wide spread issues for the various CL months?...meaning, dealing with large spread? and entering your spread trade?..how get to your advantage? 2-any advantage to entering spread when CME globex CL is cruising down or soaring? 3-how do you play the weekly wednesday EIA report at 10:30AM eastern with a spread trade? 4-do you execute your CME Globex CL spread trade when the normal pit traded nymex is trading or at night etc.??? 5-what is your average time to hold per CME Globex CL spread trade?..intraday, 1 day, 3 days, weekly etc.? i guess i could attempt a couple of these questions,,anyone else is more than welcome to correct me or add to what ive said.. 1. go to TT's website and forums to learn how to use their autospreader to get a better idea of what the spreads worth and how to "leg" into it more efficiently. 2. there's a slight advantage. if ur planning on doing the july/aug. spread (just for example purposes)...if july outrite is rallying u get long and leg into that first. then when u think it might be over-bought u can short the august outrite 3. wednesdays almost a wasted day unfortuntely.. i dont do ne trades until after 12 usually 4. after hours trading is obviously very thin.. especially if ur new to the game u probably just wanna stick to when the market is open.. 9-2:30 est trading 5. just depends on what kind of trader u are.. i am not a scalper so i tend to hold my outrites the whole day or even 2-3.... there's something called the "goldman roll" that happens on the 5-10th of every month where the funds come in and start to buy the spreades...thats usually when the spreades begin to move out their furthest,,,not saying that b4 or after the 5th-10th they cant move further out or in for any ridiculous reason, but getting in front of the roll isnt a terrible idea with whatever loss limit u can handle...
Are they buying the front or selling? My guess would be they are selling the front, buying 2 second months and sell a further out. Please comment. TIA GC
From the best of my knowledge the big funds like that are not legging into them (at that particular time), they're buying the actual spread itself... so july/august...august/sept... or wider months like june/dec..etc etc...