Interactive Brokers

This is a discussion on Interactive Brokers within the Brokerages forums, part of the Commercial category; Originally Posted by wmbelg Still nobody has voted my poll. Aren't there really no lumber lovers, i mean traders? It's ...

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Old Nov 30, 2008, 2:47am   #1177
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Originally Posted by wmbelg View Post
Still nobody has voted my poll. Aren't there really no lumber lovers, i mean traders?
It's not that, I just think they wooden vote.....

OK, I'll get my coat
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Old Nov 30, 2008, 3:27am   #1178
 
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Lumber is a nasty market anyway ... why not trade something with a bit of liquidity that doesn't tend to have lock limit days. Perhaps IB doesn't want the joy of customers whining when they get locked into a lumber contract and its sucking their blood day after day while they wait to get out?
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Old Nov 30, 2008, 12:08pm   #1179
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There are now also the lumber options to limit the risk.

Maybe i have to open a competition: the 1000nd voter gets a trip New-York to Paris?
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Old Nov 30, 2008, 12:10pm   #1180
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Quote:
Originally Posted by wmbelg View Post
There are now also the lumber options to limit the risk.

Maybe i have to open a competition: the 1000nd voter gets a trip New-York to Paris?
Why are you so fixated with wanting to trade lumber ?


Paul
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Old Nov 30, 2008, 12:52pm   #1181
 
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Originally Posted by wmbelg View Post
There are now also the lumber options to limit the risk.

Maybe i have to open a competition: the 1000nd voter gets a trip New-York to Paris?
Note what happens to the price of lumber options when the market goes lock limit. At that time you will discover what thin and premium really mean. And risk.
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Old Nov 30, 2008, 12:55pm   #1182
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Why are you so fixated with wanting to trade lumber ?


Paul
Because prices are now low and you can bet now for a long run up.

Let's say you bought oil at 145$ in a very liquid market and you are now at 50$: you can get big losses in a liquid market too. I traded oil when it came back into the 90$ area (at that time every one was convinced it would not drop further) , and now again in the below 50$ area.
(every trade was positive, but very limited)

For lumber the boundaries are probably 150 to 450$, which is the same span as for oil 50 to 150$.

On indexes like Dj, I trade on very short base (minutes), to get a little profit because I don't know were the market is going in a longer run.

But when something is at the bottom range, I can risk to buy, say the november 2009 lumber contract and what it run up for a longer run.
I wouldn't buy lumber at 450$; but at 200$ risk is limited. And my account covers the full amount of one contract, so i can ride it until 1$ (probably not a good idea), but all other contract are around 100k$ (ok you have minis now, but try to trade the mini copper, spread too high))

The products i trade are not always the same, they change with the price and increase in risk.
I usually come in the market after a very big move, then there is probability for a move in teh other direction.
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Old Nov 30, 2008, 1:03pm   #1183
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Do you know that the contracts are physically delivered and pit traded (ie. not electronic)?
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