NYBOT versus NYMEX

Hi there,

I've been trading NYMEX energies for a few months.. not long, but enough to develop an appetite.

Now, I know NYBOT/ICE has a number of heavily traded energy futures as well... any input as to how they move versus the NYMEX?

Are they mostly in lockstep? Are the spreads comparable? Any significant differences between the two?

 

if you have the capitilization, some good spreading opportunities exist between NYMEX and ICE contracts.

If you want to stay directional and not spread though, I'd stick with NYMEX.

 

I'm actually trading volatility.. any insight on how that might differ between the two?

 

WTI, heating oil and Gasoline are the same exact contracts... Only Nat gas is different and brent is almost only traded on ice.

 

exactly...WTI/Brent spreads are what I was referring to.

and heech...if I told you how to trade it what would be the fun in that? lol

 

Okay, so I'm starting to figure this out. They have the same contracts, but really (nearly) all the volume is on only one exchange or the other:

- heating oil, rbob volume is all NYMEX.
- WTI, brent, gasoil are all ICE.

 

Not WTI which is traded quite heavily on both with more volume on NYMEX

 

You're right, I just realized WTI = CL.

Wonder why both are so liquid? Why would one choose to trade one versus the other?

 

And another mystery from a newbie... why isn't there more exchange-based trading volume in other often-used commodities?

Coal QL, for example... it looks volatile enough on a month chart. And it's certainly heavily used in the "real" world... why isn't there more trading going on?

 

If you look at electricity, Nymex volume is anemic. Ice dominates in power, but doesn't publicly publish volume.