Breaking my rule if Oil drops to $15p/b

[Nowler]

I took a long at 9.84 on the way back up, but chickened out quite quickly because it was all too frenetic for me, with the spread opening and closing to an alarming degree which added to the price volatility leaving my balance shooting up and down like a mad bungee jumper. Wish I’d had the courage to have stayed in

It did get a little mental for a while, lol
I cannot handle it... I get too twitchy. Which is why I stopped trying to day trade and instead trade on a longer horizon.

So yours went sub 10.00 too...
My low on WTI was 11.07

 

[barjon]

It did get a little mental for a while, lol
I cannot handle it... I get too twitchy. Which is why I stopped trying to day trade and instead trade on a longer horizon.

So yours went sub 10.00 too...
My low on WTI was 11.07

Low was 7.89 on mine.

 

[new_trader]

I took a long at 9.84 on the way back up, but chickened out quite quickly because it was all too frenetic for me, with the spread opening and closing to an alarming degree which added to the price volatility leaving my balance shooting up and down like a mad bungee jumper. Wish I’d had the courage to have stayed in

I bought @962.1 and got out @1009.6 just so that I can say I bought oil in the single digits. 😁

 

[postman]

Low was 7.89 on mine.

How many people can believe they are reading Oil at $7.xx per barrel! Yesterday negative oil prices.
WTF.
Everything I ever new about trading just went out the window.

 

[new_trader]

It did get a little mental for a while, lol
I cannot handle it... I get too twitchy. Which is why I stopped trying to day trade and instead trade on a longer horizon.

So yours went sub 10.00 too...
My low on WTI was 11.07

I'd change providers, the low on the front month of the futures is $6.50 and I'm sure I saw my IG quote had a 6 handle at one point. The low on the chart is 725.7

 

[new_trader]

How many people can believe they are reading Oil at $7.xx per barrel! Yesterday negative oil prices.
WTF.
Everything I ever new about trading just went out the window.

That was an expiring contract - MAY futures

 

[postman]

@Nowler have you thought about adding this trading site to your list you post on, I'm sure they'd be interested.

Reddit - Dive into anything

www.reddit.com

 

[new_trader]

That was an expiring contract - MAY futures

 

[postman]

I think the highlighted portion sums it up nicely.

A Beginner's Guide to Oil

Fundamentals

Everyone here is freaking out about oil, and literally every post is so incorrect and idiotic that I had to step in and put an end to this nonsense. Full disclose, I'm a professional trader. You might think you are a professional trader, but you're not. Professional traders get paid to trade with someone else's money not waste time lighting their own on fire. This is going to be long because there's been a varying degree of idiocy the last few days and I want to make sure no idiot is left behind.

https://www.reddit.com/r/wallstreetbets/comments/g5i8gx

 

[new_trader]

I think the highlighted portion sums it up nicely.

A Beginner's Guide to Oil

Fundamentals

Everyone here is freaking out about oil, and literally every post is so incorrect and idiotic that I had to step in and put an end to this nonsense. Full disclose, I'm a professional trader. You might think you are a professional trader, but you're not. Professional traders get paid to trade with someone else's money not waste time lighting their own on fire. This is going to be long because there's been a varying degree of idiocy the last few days and I want to make sure no idiot is left behind.

https://www.reddit.com/r/wallstreetbets/comments/g5i8gx

"You are basically agreeing on a price to buy/sell Oil at a FUTURE time."

This completely incorrect. You are agreeing to buy or sell at the current price and deliver or receive in the future when the contract expires.

 

[postman]

"You are basically agreeing on a price to buy/sell Oil at a FUTURE time."

This completely incorrect. You are agreeing to buy or sell at the current price and deliver or receive in the future when the contract expires.

It is completely correct.
Both sentences say the same thing, you agree the price today and buy or sell the commodity in the future.

 

[postman]

Interactive brokers is .... broke. IB loses $88m because its customers had positions in oil they couldn't pay for.

GREENWICH, Conn.--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (Nasdaq: IBKR) today noted that, as has been widely reported, the energy markets yesterday exhibited extraordinary price activity in the New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil contract. The price of the May 2020 contract dropped to an unprecedented negative price of $37.63. This price was the basis for determining the settlement price for cash-settled contracts traded on the CME Globex and also on a separate, expiring cash-settled futures contract listed on the Intercontinental Exchange Europe (“ICE Europe”).

Several Interactive Brokers LLC (“IBLLC”) customers held long positions in these CME and ICE Europe contracts, and as a result they incurred losses in excess of the equity in their accounts. IBLLC has fulfilled the firm’s required variation margin settlements with the respective clearinghouses on behalf of its customers. As a result, the Company has recognized an aggregate provisionary loss of approximately $88 million.

Interactive Brokers Issues Statement on Crude Oil Contracts and Margin Loss

Interactive Brokers issues statement on Crude Oil Contracts and margin loss

www.businesswire.com

 

[Nowler]

@Nowler have you thought about adding this trading site to your list you post on, I'm sure they'd be interested.

Reddit - Dive into anything

www.reddit.com

You trying to get rid of me

 

[postman]

You trying to get rid of me

Nope, lovin the thread, you can post on both sites, and you'll get more appreciation for your efforts there.

 

[new_trader]

It is completely correct.
Both sentences say the same thing, you agree the price today and buy or sell the commodity in the future.

But an oil producer who sells a futures contract today doesn't plan to buy or sell in the future. They plan to deliver the oil in the future. The actual sale took place today. Not sure how the sentances say the same thing.

 

[MasterOfCoin]

everal Interactive Brokers LLC (“IBLLC”) customers held long positions in these CME and ICE Europe contracts, and as a result they incurred losses in excess of the equity in their accounts. IBLLC has fulfilled the firm’s required variation margin settlements with the respective clearinghouses on behalf of its customers. As a result, the Company has recognized an aggregate provisionary loss of approximately $88 million.

Oh deary me

"The Company does not believe that any anticipated losses will have a material effect on its financial condition."

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its February 24, 2020, Best Online Broker Review.

Translation:
...Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated ability to drop us deep in the sh1t pit and pull up the ladder....

 

[Nowler]

I'd change providers, the low on the front month of the futures is $6.50 and I'm sure I saw my IG quote had a 6 handle at one point. The low on the chart is 725.7

Yeah, I had been considering changing to IG as I can trade inside an ISA with them.
But I have this position with this crowd now...

I can always cease depositing into this account and ride it out.
IG have far higher depositing limits I believe... not bad, but certainly higher than Oanda.
It's a sad day when you can't trust the Japs
Really weird that our lows are so different...

 

[Nowler]

Nope, lovin the thread, you can post on both sites, and you'll get more appreciation for your efforts there.

I just had a quick look and came across this gold!
HAHAHAHAHAHAHA!

 

[Nowler]

The Trump Pump is on it's way... chooo chooo

 

[postman]

But an oil producer who sells a futures contract today doesn't plan to buy or sell in the future. They plan to deliver the oil in the future. The actual sale took place today. Not sure how the sentances say the same thing.

"You are basically agreeing on a price to buy/sell Oil at a FUTURE time."

When you buy a futures contract you are not buying the underlying product but the obligation to buy it at a specified price in the future. The contract price is a fraction of the underlying commodity price which is only paid on expiry.

No one is paying up $16,000 for 1,000 barrels of oil when they buy 1 contract in March for an April settlement , that only happens at settlement. If you own the obligation to pay someone $16,000 for collecting 1,000 barrels on delivery, you pay them on delivery (in the future).
This is why the people who on 18 Apr bought the obligation to sell oil at $16 on 20 Apr lost $88m on the settlement date (20 Apr in their future) when they had to take physical delivery of 1,000 barrels or sell it to someone else for -$34 and pay them to take the oil away.