NexusFi: Find Your Edge


Home Menu

 





Oil price negative?


Discussion in Commodities

Updated
      Top Posters
    1. looks_one SMCJB with 71 posts (168 thanks)
    2. looks_two GFIs1 with 33 posts (98 thanks)
    3. looks_3 SunTrader with 25 posts (13 thanks)
    4. looks_4 NotKenGriffin with 15 posts (10 thanks)
      Best Posters
    1. looks_one GFIs1 with 3 thanks per post
    2. looks_two SMCJB with 2.4 thanks per post
    3. looks_3 bassa with 2.2 thanks per post
    4. looks_4 Big Mike with 1.8 thanks per post
    1. trending_up 55,630 views
    2. thumb_up 501 thanks given
    3. group 246 followers
    1. forum 260 posts
    2. attach_file 16 attachments




 
Search this Thread

Oil price negative?

  #51 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,048 since Dec 2013
Thanks Given: 4,384
Thanks Received: 10,206

Lot of evidence here that IB are negligent.

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Exit Strategy
NinjaTrader
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
Pivot Indicator like the old SwingTemp by Big Mike
NinjaTrader
ZombieSqueeze
Platforms and Indicators
Trade idea based off three indicators.
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Just another trading journal: PA, Wyckoff & Trends
29 thanks
Tao te Trade: way of the WLD
24 thanks
Diary of a simple price action trader
21 thanks
My NQ Trading Journal
14 thanks
HumbleTraders next chapter
10 thanks
  #52 (permalink)
 
casey44's Avatar
 casey44 
Louisville KY
 
Experience: Beginner
Platform: NT8
Trading: micros
Frequency: Daily
Duration: Minutes
Posts: 247 since Jan 2010
Thanks Given: 4,049
Thanks Received: 311

.

Visit my NexusFi Trade Journal Reply With Quote
  #53 (permalink)
 GFIs1 
who cares
Legendary Market Wizard
 
Experience: None
Platform: nobody interested
Broker: none
Trading: forget about it
Posts: 6,931 since Feb 2012
Thanks Given: 6,195
Thanks Received: 15,580


After seeing a historic event in oil - now a sneak preview on effects



We are still at the beginning - things WILL CHANGE in 2020 and after.
Reflections are welcome

GFIs1

Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #54 (permalink)
 
AlexSobol's Avatar
 AlexSobol 
Sumy, Ukraine
 
Experience: Beginner
Platform: NinjaTrader
Posts: 59 since Apr 2019
Thanks Given: 113
Thanks Received: 105

We really live in interesting times

Reply With Quote
Thanked by:
  #55 (permalink)
 GFIs1 
who cares
Legendary Market Wizard
 
Experience: None
Platform: nobody interested
Broker: none
Trading: forget about it
Posts: 6,931 since Feb 2012
Thanks Given: 6,195
Thanks Received: 15,580

Impact on $

Oil was historically a strong base for gross domestic product in the USA and a most important factor worldwide as oil is traded in US dollar. When oil is nearly nothing worth as we see these days then a main export factor is breaking off. Looking at sales figures worldwide then these numbers are in the cellar. With it the gains too.

A further impact may be come that the longtime legitimization bonus of the $ for oil might be skipped.
Thus the US economy with production and banks will be negatively influenced.
Not to forget that many banks outside of USA (GB, Germany, Switzerland, Arabic states +) are heavily bound with credits especially in oil which now looks very bad for their invested assets.

To be clear - the oil is not THE cause but part of a deflating bubble which was growing since the financial crisis of 2008. The recession is here. Inflation will be weighing heavily for coming years. On all industrial countries.

What does it mean for the trader? One has to observe the currency pairs to the $ carefully in coming months. Plus weighing up the risk that is involved by certain combinations in trading positions when in connection with US currency.

GFIs1

Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #56 (permalink)
 
Pa Dax's Avatar
 Pa Dax 
Netherlands
Price Action Scientist
 
Experience: Advanced
Platform: NinjaTrader, IB TWS
Broker: InteractiveBrokers, CQG
Trading: ES
Posts: 1,236 since Oct 2017
Thanks Given: 2,007
Thanks Received: 6,318


SMCJB View Post
Settlement price will be 37.63. On one lot of QM that's a $18815 difference than selling at 0 and a $27,950 change from Friday night.

@bassa sounds like IB's systems do not allow negative prices. You were unable to liquidate your positions because of flaw in their software. That is 100% their fault and they can not blame any other party. CME has been sending out messages that they would allow prices to go negative for at least two weeks. IB obviously ignored the. Sounds like IB may have some liability there.

This might be a tough fight. From what I saw yesterday using IB TWS was that the charts weren't working but I still had bid and ask prices (negative). I still have them now. Their contracts and agreements on futures trading are pretty solid.
I get an e-mail from IB every time I trade a new contract that the contract description is misleading and that May expires in April. I also get a notification if I hold positions close to expiry and that IB does not support physical delivery and will close out automatically.
However, most importantly, IB wants to see that you tried everything you could to get out of this position and the audit trail of TWS will be required (does the mobile app have audit trail btw?) to see if you tried market orders, whether or not you tried calling their order desk, if you filed a mistrade request, all that. The simple fact that their application didn't work is not enough - I've seen if many times before where the app does something strange and you're not sure if you're in our out of a trade - doesn't matter.

For cancellation requests for example, they state:

Quoting 
For all such trades, a participant in the transaction ("Participant") must notify IBKR within thirty (30) minutes of the execution of the trade by using the Trade Cancellation Request tool located within Account Management. While requests received via telephone will also be processed, such requests may involve wait times which, in the aggregate, may lessen the likelihood that the petition is submitted in time. Please note that IBKR does not support email communications for this purpose and requests sent through the Help & Contacts link on the website are not intended for matters of urgency.

I don't like to be bringing you bad news, but IB will challenge you on the above. You initiated a new position an an expiring contract in a fast down moving market where liquidity had already rolled over and you took it with just hours left till IB demands you to be clear of the contract.

I'm sorry for the loss @bassa but I believe it's better to be realistic than hopeful on this one. I see you're also from the Amsterdam area, send me a pm if you need reference to a lawyer on this subject. I'm from the same area. Again, real shitty that this happened to you. I wish you well.

Visit my NexusFi Trade Journal Reply With Quote
  #57 (permalink)
 GFIs1 
who cares
Legendary Market Wizard
 
Experience: None
Platform: nobody interested
Broker: none
Trading: forget about it
Posts: 6,931 since Feb 2012
Thanks Given: 6,195
Thanks Received: 15,580

@bassa

Help you can get here - best to call IB Zug Switzerland for such problems, even it is late for it - they may give you good advice how to handle it:

Switzerland
Phone: +41417269536

United Kingdom
Phone: +44 207 710 5696

For a second try I have included the London number too.
As a longtime IB client I got help very quickly when in trouble.
Of course on last day for futures or with very wide set stops the client has to know what he does. Such "errors" are quite normal (eg. the MAY contract ends in APRIL) and more.

Have always both phone numbers plus your client number @ hand when you are live trading.

Good luck
GFIs1

Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
Thanked by:
  #58 (permalink)
 mzelixon 
Tel Aviv, Israel
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Ninjatrader
Trading: ES, CL
Posts: 66 since Mar 2014
Thanks Given: 61
Thanks Received: 88

Guys I don't trade oil anymore but can someone tell me which contract went negative???
The May one?
Because I use NinjaTrader with CQG and I only see it dipping just slightly above zero.
Something must be off.


Reply With Quote
Thanked by:
  #59 (permalink)
 
Pa Dax's Avatar
 Pa Dax 
Netherlands
Price Action Scientist
 
Experience: Advanced
Platform: NinjaTrader, IB TWS
Broker: InteractiveBrokers, CQG
Trading: ES
Posts: 1,236 since Oct 2017
Thanks Given: 2,007
Thanks Received: 6,318


mzelixon View Post
Guys I don't trade oil anymore but can someone tell me which contract went negative???
The May one?
Because I use NinjaTrader with CQG and I only see it dipping just slightly above zero.
Something must be off.


I think it depends on your data provider whether or not they have already adapted to negative prices. Some just stop at 0 or do other strange things.

Sent using the nexusfi.com mobile app

Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #60 (permalink)
 GFIs1 
who cares
Legendary Market Wizard
 
Experience: None
Platform: nobody interested
Broker: none
Trading: forget about it
Posts: 6,931 since Feb 2012
Thanks Given: 6,195
Thanks Received: 15,580


@mzelixon

It was the MAY contract (future). It closed yesterday.
Here a chart with the rollover pricing of WTI of TODAY - as we can see the price was near -$20 around midnight CET. Yesterday it went down to around -40$/barrel



GFIs1

PS: I don't trade oil (neither which contract) - neither long nor short.

Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
Thanked by:




Last Updated on January 23, 2021


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts