Trading Oil Futures

[NewTrader1]

Is there money in this? Is it mostly swing traders or some spreaders as well?

 

[Rhody Trader]

There's potentially loads of money in it given the volatility of that contract, and all different types of traders participate.

 

[NewTrader1]

Are the spreaders making money as locals?

 

[Rhody Trader]

Are the spreaders making money as locals?

I'm not sure what you mean by "spreaders". In the energy markets the spread trading comes in a variety of forms. Or are you talking about market makers who make their money of the bid/ask spread?

 

[NewTrader1]

Spreaders as in butterflies, condors, calendars etc.

 

[toxictrading]

i have to be honest i get really fed up of seeing people asking "how much can i earn" "is there any money in it" yes there is money in it if you can trade or have the will to learn how to trade, no there is no money in it if you are just after a quick buck,

 

[Rhody Trader]

Spreaders as in butterflies, condors, calendars etc.

I'm sure there are folks employing those strategies in oil, just as there are in pretty much every other market. Whether they are "locals" or not is up for debates as I understand oil trading to be among the more rapidly moving to a nearly all electronic marketplace, so floor traders are becoming scarce.

 

[NewTrader1]

Toxic, it is generalyl eaier to make money in some products than others due to issues like liquidity, volume etc that is why I was asking regarding oil spread traders.

 

[toxictrading]

it is not easy to make money in any market !

 

[NewTrader1]

Put another way are there guys in trading arcades making money with these oil spreads at present in London?

 

[DC STOXX]

Ask Richie, i think he spreads energy markets

 

[fcmisc]

I think RichieE (prob the same dude black-star is refering to) trades flies in some of the commodity markets. And he seems like nice chap from the messages that I've exchanged with him.

Anyway, like Toxic said, you can make or lose a load of cash from these markets. I've spent the last couple of weeks listening to an oil trader smacking his face against his desk while swearing at himself. However, some oil trades paid for my flat a few years ago.

Don't try any of that mean reversion bull**** on the spreads and/or flies. They often look good, especially if you optimise your charts, but you'll probably do well for a month or two and then blow your account.

Good luck!

fcmisc.

 

[DC STOXX]

Don't try any of that mean reversion bull**** on the spreads and/or flies. They often look good, especially if you optimise your charts, but you'll probably do well for a month or two and then blow your account.


fcmisc.

I may have said it before, but i have seen more than one trader blow up, but 75% of the time if they had applied the above they would still be professional traders.

 

[Rhody Trader]

I may have said it before, but i have seen more than one trader blow up, but 75% of the time if they had applied the above they would still be professional traders.

Just asked all the blown up quant funds.

 

[fcmisc]

Just asked all the blown up quant funds.

How many quant funds blew up? From my narrow experience of trading, the quants are a bit of a joke(I know one who's still going strong despite a highly consistent 5 year losing streak), and the barrow boys with their mickey mouse excel spreadsheets are cleaning up.

 

[crude_lover]

out of interest guys what oil contracts do you mostly trade then brent ? wti ? or bit of both lol