Long term crude oil trade, best way to do it?

Discussion in 'Trading' started by mikkom, Jan 26, 2012.

  1. hkrahra

    hkrahra

    I was thinking about the same.Thanks Bob, your the true professional.
     
    #11     Jan 27, 2012
  2. ocean5

    ocean5

    Hi,Bob,but what about the settlement,if i`m down for the day before the settlement,i`ll be debited to this difference?how to avoid this with futures,is there a way?

    Thanks.
     
    #12     Jun 25, 2012
  3. That far into the future (no pun intended), you're best off using an option. Contracts are listed far out, but they have barely any open interest. With that kind of an illiquid market you can easily go through a day or two without any actual trades happening (for that particular month/year) and get a weird settlement price and an associated out-of-the-blue margin call you can't afford.

    If you still wanna put it on, I'd stick with 'US Style' options, rather than 'European Style' options (the former can be exercised before expiry, so you aren't dependent on market liquidity when you wanna/haveto get out of the trade...
     
    #13     Jun 25, 2012