Dear All, Does anybody trade Light Crude oil? as far as I know, it's the most liquid energy contract, isn't it? What do you guys have to say about it? Regards Raphael
Thanks for your post. How fast executions are? Is it traded like other futures or should I be aware of any particulars? Like, when trading stocks...you must know ECN routings and etc....when trading AMEX, some offers in the level II are not direct access, therefore they can take a while to get your order executed... So, What I'm saying is that, since this market (ligh crude oil) has different trading hours (10:00 A.M. until 2:30 P.M.)...whatever you could share with us, I will be of big help. also, any advice (good or bad) on brokers? Regards Raphael p.s: Tick value is U$10,00 per 0.01 fluctuation(which is the minimum?)?
Don't trade Crude oil with IB!!! I was short Crude Oil @$38.5 and had to cover my position before the biggest price drop in history occurred because of stupid expiration regulations with IB in Crude Oil(QM). IB only provides to trade one Crude Oil future at one time without giving the possibility to roll over without a time lag. I was forced to cover my position on a friday and the next future contract with IB could only be opened on the following monday. Guess what, the huge price decline happened over the weekend, and I was totally pissed off. I told IB that they have some kind of systematic mistake with QM futures, which resulted my trading in a very negative way. If IB makes a mistake, they never admit and of course they never ever compensate you if they make an error, no matter how much commissions they have earned on you.
GATrader, HO and HU are also liquid. OK, I'm cracking myself up but no on else. (anyone get that one?) The pit contract trades very well most of the time, but can stick you with a bad fill on occasion. If you're daytrading you absolutely have to have a broker who is right there by the pit. None of this run it over from the other side of the floor and wait two minutes for a fill. I would say you can do 20 -50 contracts no problem. The emini crude contract is much more erratic and sometimes has a wide spread and not much size quoted. I would never try to trade it without also watching the RTH. You should also be aware that IB has an odd notation in which they list the month code one month earlier than the actual contract, ie what they call May is actually June. Since crude is a monthly expiration, that means you have to pay attention. This is one of the premier trading markets, but can have wide swings and really hurt you if you're too big for your account.
Sorry for my ignorance, but what's crack spread? What I would like to know, is how long does it take to get your order completed? I mean, I call my broker and tell him to buy 5 contract at the ask....usually, in how long he will answer me back: "DONE"...??? Also, I read you guys saying something like: "You must be in contact with a broker in the floor..." Should I be aware of what, when choosing my broker? If i'm gonna be connected to the floor (directly with the pit guy)?....etc Thanks Raphael