Instrument for Oil

Discussion in 'Trading' started by Qu|cksilver, Sep 16, 2008.

  1. Hi,

    I'm new with trading Oil. I noticed that my broker (Windsor) has two different instrument which is LIGHT SWEET CRUDE OIL OCT and LIGHT SWEET CRUDE OIL NOV.
    Can anyone tell me what are the difference with the two instruments? Why do they have OCT and NOV?

    Which instrument do you trade? OCT or NOV?

    Thank you in advance.

  2. You need to google how futures work. That will explain everything. Whatever you do don't trade crude futures unless you are damn sure what you are doing :)
  3. oil is traded as a contract for a certain month, both you mentioned are valid, it is just typically how long of a time frame you want if you buy the oct contract it expires end of (third week i think) of oct. and if u buy nov third week of novemebr and so on, typically contracts further out will sell at a premium this premium is simply a "time" premium. You can also participate in oil markets through an oil etf such as USO or possibly other equities that typically go up/down depending on how oil goes like alternative energy like solar (up) airlines (down) refiners (down) and so on
  4. ye and i forgot to mention that,don't trade futures unless you are absolutely sure of what you are doing cus you can get killed.

  5. LOL

    I trade oil fulltime mate, and im not being rude, but if you don't know teh basics yet of the differnet delivery months, please pleaseeee stay to virtual trading for now.

    Because the oil has gone ccompletely mad now!!

    Its completely ignoring the dollar, sometimes actually going higher even when dollar strengthens, and so the only way to trade it is scalping S&R levels + trading off the fuking dow chart!! LOL

    Cos oil is now just copying dow.

    But back to your question, ocy / nov are the 2 different months that the contract will expire.

    Price basically the same, id advise using nov contract though so ou will have time on your side.
  6. The Oct contracts will go bad more quickly obviously, you want to be careful which one to buy.
  7. If you are a newbie to futures and oil, and wish to have a lot of fun with that money, send it to me and I will mail you a book of blonde jokes. It will have the same financial effect of you trading in those markets with feet that aren't yet wet in oil futures.
  8. Thank you very much for your reply.

    one question: what if i'm a day trader (short term)?

    still risky? :confused:
  9. what benefit do you see in oil futures that you can't get with stocks if your really a day trader??
  10. YESSSSSSS!!!

    you could lose god knows how many times your investment in one day. easy. probably 4 times or something crazy.
    #10     Sep 16, 2008