Brent v nymex???? How can you lose?

Discussion in 'Energy Futures' started by playinforkeeps, Feb 20, 2006.

  1. Whats everyones opinion on the brent/nymex crude situe. Is this not the perfect time to short Brent buy nymec...............good hedge in my eyes, but hey, i'm still paper trading.

  2. How much can you lose? In your case, nothing! If real money were on the line, the correct answer is: "Pick a large number, a very large number."
  3. Where are you paper trading commodities? I haven't been able to find any sites without first becoming a client of the brokers? Also can anyone recommend a site where I can graph spreads, including stock/commodity future spreads? Example: XAU vs. Gold futures

  4. Spddst


    If you short Nymex WTI and buy Brent you’re really just playing a spread and your losses are limited because of the correlation factor. Theoretically, and it has happened, the spread between WTI and Brent has gapped, but there is always reversion to the mean.

    If WTI rises against your short, Brent will also rise in a relative factor, offsetting your short (loss). Likewise, the opposite is true.

    You might be better off trading the swap market (if you have access) or the Brent/WTI spread contracts to take advantage of the narrowing or widening of the spread(s).
  5. You can find free charting services with a quick search. I basically use spread betting sites which give you virtual money to trade with. They follow all the major markets. Most of the ones i use don't show volume so you wil need a chart site for that.
  6. danoXP


    Well ... if you did the front month (April) you are losing ... if you did May/June losing less.

    How is your trade going?