Soldato
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I know what it is, I don't know what it would be listed as under a normal stocks exchange.
Trading the stockmarket (NO Referrals)
- Thread starter mcast123
- Start date
I know what it is, I don't know what it would be listed as under a normal stocks exchange.
Soldato
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Ah ok CFDs that's a bit different - the usual Brent / WTI futures contracts are for 1k barrels .... and then options on those futures too.
Soldato
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Nah that's not for me. Saw some guy made 26k buying 1k barrels at $0.01 or something but can't sell the contracts now so has to take delivery as the place he trades doesn't settle for cash on expiry!
So you don’t know what it is. Oil isn’t traded on a stock exchange. Physical oil is traded OTC. Oil futures are traded on futures exchanges.
Why are you trading something if you don’t even know what you’re trading beyond it being oil related? Even if you’re mostly a “technical” trader you should at least know what you’re trading, what the contract specs are, what the actual underlying instrument is and (and in turn what the specs are for that and the underlying etc.. as it’s probably a futures contract itself) and at least look at some news/understand the basics behind that market.
Obvs I can take a guess - it’s presumably a CFD based on Brent futures on ICE or CME? Is this crypto exchange basically acting as a bucket shop when offering these other products and providing a two way quote? Or are they basically offering their own mini futures products somehow?
Soldato
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Sounds like BS - retail brokers don't even support physical delivery of futures contracts aside from some currencies. The broker would have to close out the position, it wouldn't result in the customer having to take delivery
Not to mention the exchanges have their own solutions too. Most FCMs would force retail clients to close any contaracts for physical delivery 2 days before expiry minimum. These anecdotes people come up with about some bloke having to take delivery of a bunch of pork bellies etc.. or thousands of barrels of oil after forgetting a position and getting a call from an angry broker are generally fantasy.
Soldato
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Yeah - I solely use IBKR and they publish a table when futures are closed out (I think it's 9:30 ET, 2 days before expiry)
They send out plenty of reminders too warning you of liquidation .. I hold some currency futures that they don't support delivery of
Soldato
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How many swimming pools would I need for a contract fill. I cant imagine any way its viable to store for most people or even companies, a natural cave system thats sealed is all I can think of. An ironic use for some of the decommissioned cold war under ground facilities perhaps, if the concrete were still good.
HUR feels a lot cheaper and a possible bargain however, of these two its probably the more risky and in theory more expensive in performance to risk cost. Good idea to read more on both.
CEY also doing very well, Iam slightly wary on singular country commodity type stocks that are already small and therefore dangerous vs financing costs, etc. I wont have much choice but to sell if CEY gets back near to 200p.
Mostly I'm glad I went with ABG before it delisted and held ABX since then, I think we're quite biased to the largest companies in every sector. Small oil fund I noticed is capitulating, they selling out at the bottom which is the worst case scenario for holders - a bit like the woodford fail.
WPCT might have done better to have been sold even roughly in 2019 before this 2020 but its still in the game as SUPP and I like schroders and they done well for me in the past, hopefully they prove worth their fee on this. I'd like SUPP to do well like the FT250 might.
TEP is another resilent stock, never seems to get cheap like it was long ago. Robbie Burns biggest holding still I think.
I add regularly for AAZ but I cant think of anything else we celebrate getting more expensive. I wish it would dip, still in shock my days of buying it 50p downwards was somehow on the cheap, if I had held all that I'd be overweighted but probably felt like a genius.
HUR feels a lot cheaper and a possible bargain however, of these two its probably the more risky and in theory more expensive in performance to risk cost. Good idea to read more on both.
CEY also doing very well, Iam slightly wary on singular country commodity type stocks that are already small and therefore dangerous vs financing costs, etc. I wont have much choice but to sell if CEY gets back near to 200p.
Mostly I'm glad I went with ABG before it delisted and held ABX since then, I think we're quite biased to the largest companies in every sector. Small oil fund I noticed is capitulating, they selling out at the bottom which is the worst case scenario for holders - a bit like the woodford fail.
WPCT might have done better to have been sold even roughly in 2019 before this 2020 but its still in the game as SUPP and I like schroders and they done well for me in the past, hopefully they prove worth their fee on this. I'd like SUPP to do well like the FT250 might.
TEP is another resilent stock, never seems to get cheap like it was long ago. Robbie Burns biggest holding still I think.
Soldato
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It's a bitcoin settled contract based on the brent crude spot price, Basically a perpetual futures so no different to trading Bitcoin on a platform such as Bitmex just this time it Brent oil instead of Bitcoin. A few crypto exchanges are adding conventional products to their platforms now.
It was actually some kind of futures as he bought at -$32, He managed to sell in the end. Some other people said the same about he wouldn't have to take delivery but didn't see those yesterday, I don't know a lot about non crypto trading so only going off what was said.
https://www.reddit.com/r/wallstreet...ught_oil_at_32_yesterday_and_made_26000_sort/
Soldato
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Which exchange is that, they really wont like some random website setting up mainstream deals like that. In Uk we have excellent laws that just class it as betting but that means they scoop 30% of the margins, so a website operating outside of that tax regime wont be welcomed. I thought Trump was about to announce some fairly harsh law for crypto a bit before this virus became news everyday, that would have matched a low some were predicting I figured
Soldato
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It's PrimeXBT, Just another non regulated non KYC crypto exchange based in the Seychelles. It is basically gambling your Bitcoin.
Brent price from where though? Do you have a contract spec? For example if you were to trade Brent Crude futures on ICE you have a spec here:
https://www.theice.com/products/219/Brent-Crude-Futures
There is an option to settle in cash (assuming you don't close out the positon):
In the case of this crypto exchange you're using it's one of these oddball "perpetual futures" contracts that exist in crypto world... so somehow tied to the underlying via funding rates.
Do they actually provide you with a limit order book for this stuff or are they just some bucket shop providing a two way quote? Do you know if they act as liquidity providers in their own markets too and/or if they therefore get queue priority etc..? Are there other potential shenanigans with last look provisions?
Actually further to the above - can you post a pic of the actual "exchange" aspect of this site? It doesn't sound much like an "exchange" from the T&Cs? Or is it an exchange for crypto and a bucket shop/CFD type place for other products???
In particular they seem to have given themselves carte blanche to reprice trades, route them wherever they want and trade against you (I guess to be expected in gambling and crypto exchanges as that's perhaps where a lot of money is to be made - especially if they make up some special order book rules in their favour) etc..:
https://primexbt.com/legal-terms
Soldato
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No there's no order book, just bids/asks. Don't like that at all but it is what it is. Can't seem to find spec sheet either, maybe you can but the interface is like this https://web.primexbt.com/ The ticker for brent on the exchange is Brent crude spot.
It's an exchange for crypto but a bucket shop as you say for other types of things https://primexbt.com/leverage-trading-crypto-indices-forex
Like all of these crypto exchanges, You have to be careful as they can quite simply close up and take your money which is why I never keep all my trading stack on 1 exchange.
It's an exchange for crypto but a bucket shop as you say for other types of things https://primexbt.com/leverage-trading-crypto-indices-forex
Like all of these crypto exchanges, You have to be careful as they can quite simply close up and take your money which is why I never keep all my trading stack on 1 exchange.
Ah ok, that explains some of the T&Cs and the desire for them to be able to reprice stuff etc... so I presume there is an order book for bitcoin etc..?
I mean I guess if they offer some tight spreads then it might be useful - but it seems rather risky.
Soldato
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No not for BTC either that I can see, I don't usually trade here at all but with recent events it would be foolish not to make a bit of extra BTC 
Soldato
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Went in on Disney yesterday via Trading212 @ $99.54. First trade, not sure who recommended it but thank you. That free £50 share or whatever should be on its way to you...
Soldato
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That platform might be just what I'm looking for to get off this crypto exchange.
If you're gonna use a bucket shop then IG index have been around for a while and are one of the biggest. I think that crypto place is probably aimed at Americans etc.. as bucketshops (aside from FX) are illegal in the states. If you're UK based then there are plenty of regulated places that can offer you a two way quote on a variety of stuff and some leverage.