Recent content by Simoh

Thanks for your reply peakoil. While I agree that if you don't hold the bet overnight this is true, I can't really see any other circumstances when it might be (on the assumption you hold to expiry). Maybe my understanding is incorrect, if so maybe you could provide an example for me...

This is misleading, and in my opinion, not true. In the other thread I mention above I explain this fully. Once the bet has been broken down into it's constituent parts, the financing and costs of carry that are charged to the customer are increased. The financing rate paid is the rate...

It's an interesting trend, and not one that is necessarily good for the punter. I've posted my thoughts on rolling cash bets in 'Rolling Cash Commodities vs Futures, Who Wins?' See here. It would appear to be a nice way of extracting a little more revenue from those holding bets overnight, when...

There have been claims in this forum recently that (commodities) cash bets are cheaper and more transparent than futures bets, and that they are good for the client. Here I will try to explain why I think this is not the case, that in fact they are less transparent, not more, and that for many...

Peter, thanks for explaining that. ATB Simon

Peter, thanks for your reply. I take full responsibility for my comments I posted on the other thread, so please don't blame tar - he is as he says, only the messenger. I don't believe I have misrepresented CMC, I have merely reported the facts as I see them (with my own personal opinion added...

Thanks scose-no-doubt, realised this 30 secs after I posted but can't be at PC full-time.

Look forward to the explanation, but I just don't see it. A 50% premium on $90 oil is $45. Futures prices aren't $135. Simon

Actually I've been thinking about my previous post outlining the fact that you must make 30% (which became 56%) pa just to break even. For those of you who didn't spot my fundamental error, here's the correction. In fact, just to break even, typically you will need to make 560% per annum...

Thanks tar. More information about the rates I have been charged, including financing of 56% per annum on WTI crude, is in the thread titled 'CMC New Platform bet financing cost is over 30% !' Simon

Thanks tar.

While I would like to pose my question to the other thread, unfortunately every time I submit a post it says it needs to be approved by a moderator. As the moderators would appear to be on leave at the moment, according to another thread in the General section, it would seem my post is not...

Have just posted to that thread but T2W need to approve my post by a moderator first apparently. CMC have now got their wish, I have closed the bet having paid more than 1/3 of my profits in charges to them. I've transferred the bet across to the futures market and will be closing my account...

Here is my attempt to upload the images of the relevant views of my CMC account. You can see the rates in the 'Carrying Costs Annual Rate Column'. As you can see, despite the fact I am long WTI and short Brent I am being debited with all the costs for all the bets (the long does not appear...

Deadly serious. Breaking news... Today the financing rate has increased - CMC are now charging me 56% today. I am not kidding, 56%. This is effectively daylight robbery. I'll post some screenshots of my account when I figure out how I can upload the pics. Simon