Forum: Commodities
March 13th, 2012, 02:57 PM
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Replies: 11
Views: 6,432
During a contango market, you can use physical...
During a contango market, you can use physical oil for arbitrage. This requires accessible storage capacity. Buy the oil, sell the futures short and lock in the profit. If Brent crude is in normal...
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Forum: Commodities
March 12th, 2012, 05:17 PM
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Replies: 11
Views: 6,432
Let us assume that are you are in the refining...
Let us assume that are you are in the refining business. Then you have two problems
(1) make sure that your refining business gets you a decent refining margin
(2) manage the market risk of your...
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Forum: Commodities
December 7th, 2011, 05:04 AM
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Replies: 11
Views: 6,432
I do not consider myself an expert either. Of...
I do not consider myself an expert either. Of course the forward curve for the futures contracts of a commodity can and should be incorporated into the trading approach. However, the forward curve is...
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Forum: Commodities
December 6th, 2011, 03:12 PM
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Replies: 11
Views: 6,432
Did not want to argue with @shodson...
Did not want to argue with @shodson (https://nexusfi.com/member.php?u=118). I think he confused contango and backwardation. For a brief definition of contango and backwardation see the link below.
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