RBOB gasoline market making

Discussion in 'Commodity Futures' started by Surprise, Aug 16, 2010.

  1. Surprise


    Anyone had bad experience making market in RBOB gasoline or heating oil ?

    The spreads are wide and it is not a liquid market , i wounder if anyone tried making market on these products and if they failed to do so ?
  2. energy products are notorious for making big moves before you as a human can react, you can try but sooner or later you will most likely get run over. Well if anything make sure you know where support and resistance are and have some method to your market making and not just completely randomly throwing out bids and offers...
  3. What sort of market making program are you looking to run?

    These markets are all arb'd out.
  4. Surprise


    u dont say !
  5. Surprise


    as a start manual scalping ( limit orders ) ...
  6. I feel like it's not really possible anymore these days with the way computers just come in and iceberg everything, have fake orders all over the place and sweep the market at their will...maybe back in the day in the pits...nowadays I feel the bigger losers would outweigh the couple of ticks you make scalping.

    "picking up pennies in front of a steamroller"

    with that said, best of luck.
  7. just to be clear, are u talking about futures market making or options
  8. Surprise


    Futures not options

    The thing is with gasoline we have a wide spread ( this is good and bad ) , the problem is if we had a sudden spike in price with a liquidity like in gasoline , the loss will be painful , but again the sudden move maybe it will happen in my favor sometimes ...
  9. Its all relative, the spreads were 5-10 times wider when it all went through the floor.

    Its not a strategy I feel comfortable trading, but good luck.
  10. I used to trade RBOB for my personal account, in my pre-CTA days.

    That market should go back to being priced in 1/20th of a penny, e.g. $1.8565, 1.8560, 1.8555.

    The way it is now is just....stupid.

    There are better markets to scalp, if that's your cup of Tea.
    #10     Aug 17, 2010