Anybody trading Wheat ETF's

Discussion in 'ETFs' started by enochbenjamin, Feb 10, 2008.

  1. I know some here have mentioned trading DBA - but that is an agricultural basket. Does anyone have any experience with WEAT (LSE)???
  2. well - if you are not trading them, don't! I tried them today and the spreads were crazy! at some point as much as 50¢ - unless I am missing something, it is just a surefire way to lose money.
  3. DBA isn't that bad.. Although its not a great scalping tool. Good for position trading without tying up too much cash are the options on the DBA.

    Wheat minis are too illiquid and full sized wheat is too big for anyone who isn't well capitalized.
  4. you mean the 5000 mult wheat? Thats $50 per penny, no?

    Why is that too big?
  5. If you're "leaning" in the wrong direction of multiple consecutive limit moves, then the contract is too "big".
  6. If I am not mistaken, DBA is made up of equal parts

    - Oil
    - Sugar
    - Wheat
    - Gold

    In the last few weeks they all do the same thing - no hedge here.
  7. confirmed -- It's composed (upon periodic rebalancing) of
    25% sugar, 25% corn, 25% wheat, and 25% soybeans.
  8. DJ_scalper, how do you trade it? Like a stock or like the underlying commodities?
  9. Plenty of liquidity in mini wheat for 1-3 contracts. Use limit orders and be patient.
  10. enoch:

    trade it like the underlying. it wont play like a stock.
    the DBA rebalances every nov to it's base weight of 25% apiece.
    so on any given day that wont be the balance because it's in flux based on the mkt value of the four futures.

    #10     Feb 13, 2008