RBOB gasoline market making

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

  1. Surprise

    Surprise

    give us examples ...
     
    #11     Aug 17, 2010
  2. bone

    bone

    You can't "scalp" that market in the traditional sense of the term - if for example you sell the offer it becomes the bid too fast for you to flip on it; in other words you have very little chance of successfully bidding to scratch.

    I trade that market every day, but I'm spreading RBOB several different ways with other products and using automation to some extent.

    Due to the volatility in that market space, I don't recommend scalping anything flat price in energy. And yes, I scalped fixed income in the CBOT pits and on the screen for a few years before I learned how to spread trade.
     
    #12     Aug 18, 2010
  3. Surprise

    Surprise

    Thanks guys ...

    Bone as an experienced trader on energy markets , what is the worst sudden move u saw in gasoline prices after some news ( 9/11 for example ) , 2 cents , 3 cents ?
     
    #13     Aug 19, 2010
  4. Between 2004/2007 it wasn't unusual to see a move for over 6, 8, 9 cents in a day (outright contracts) on hurracane season.
     
    #14     Aug 19, 2010
  5. bone

    bone

    Oh, I've seen the crack spread move 300, 400 and one day even 500 tics in a single trading session.

    The energy markets are all about the path of pain - you will never put on a position and NOT take heat on it. You model risk/reward as best you can and stick with your game plan. Energy trends and models exceedingly well, and for me at least, I can make or lose more $ trading a 20 lot position in some energy spreads than I could trading a 300 lot position in many interest rate spreads - and that is no exaggeration.
     
    #15     Aug 19, 2010