Anyone who trades WTI-Brent spread ..who do you use ?

[energy-samurai]

FYI, for anyone interested in using a full-service broker, I regularly trade WTI-Brent through Lind-Waldock in Chicago.

As for which exchange to use, there's really only one option - volume/open interest for both Brent and WTI are extremely good on the ICE. NYMEX Brent is so thinly traded it's almost laughable - the current open interest is something like 800 contracts with no volume during the last trading day.

 

[Zeuzera]

Hi.

Brent/WTI spread is now very atractive !!!

futuresource.com | Futures & Commodities Charts - Real-Time Charts, Free Charts



I am trading this on CMC.

The spread is now near 4 USD !!!
We dont have such a good chance often.


Zeuzera

 

[gonnamakeit]

can i ask how your trading it and through what firm

i was using velocity futures -

i got caught out many times so have no taken a back seat with this....

what are you doing and how ? scalping or medium / long term ?

 

[Zeuzera]

can i ask how your trading it and through what firm

i was using velocity futures -

i got caught out many times so have no taken a back seat with this....

what are you doing and how ? scalping or medium / long term ?

Hi.

My broker for this is "CMC Markets".

I am taking this trades only if spread > 3 USD.
If spread < 3 USD, risk is to high.
As i said, such a good chance we dont have often, about 2-3 times per year.

Max spread for the past few years was 4,5 USD.
My first target for 60% of my position is 1,5 USD and second target for the 40% is 1 USD.
Or 2 USD winn for the whole position.

Beacuase of the low risk on this type of trading, i am doing it with big positions. So 2 USD winn is real big money.:clap:

I did this spread trading for the past 12 months. It takes mostly a few days to hit the target. Take a look on the chart in my first post.
This is the most traded spread in the world !!!


Zeuzera

 

[Papa Lazarou]

Hi.

Brent/WTI spread is now very atractive !!!

futuresource.com | Futures & Commodities Charts - Real-Time Charts, Free Charts



I am trading this on CMC.

The spread is now near 4 USD !!!
We dont have such a good chance often.


Zeuzera

I'm sure the people speaking on here already know, but just for the benefit of those that might not..... Be careful when placing this trade. WTI is the quoted / basis contract on the spread not Brent. i.e. it is the WTI/Brent spread, not Brent/WTI.

The trade if you want to short it is to sell WTI, buy Brent at $3 premium. The only reason I mention this is I noticed the graph had been plotted Brent basis.

As I've said you all know what you're doing - just wanted to put it out there for those who might not!!

Ike looked like it didn't do as much damage to the refineries as first thought either so this spread could well narrow in early trading......

Good luck people!