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I'll admit I'm totally clueless when it comes to oil trading...
Posted on 4/20/20 at 2:37 pm
Posted on 4/20/20 at 2:37 pm
...and commodities trading in general but I know there's a ton of oil and gas expertise on this board so I'll go ahead and ask what is probably a really dumb question...
Does the oil futures market work the same way buying a traditional company stock works? Buy an amount for pennies on the dollar and then sell when the price gets back somewhere close to historical norms?
In other words, is now a good time to buy oil futures buying super low and holding on to the investment until the market inevitably rebounds and then selling at that time?
It can't be that easy can it?
Does the oil futures market work the same way buying a traditional company stock works? Buy an amount for pennies on the dollar and then sell when the price gets back somewhere close to historical norms?
In other words, is now a good time to buy oil futures buying super low and holding on to the investment until the market inevitably rebounds and then selling at that time?
It can't be that easy can it?
11
Posted on 4/20/20 at 2:39 pm to Govt Tide
me too. but there seems to be some really knowledgeable people on this board
Posted on 4/20/20 at 2:40 pm to Choctaw
In the other thread they said Tractor Supply.
Posted on 4/20/20 at 2:41 pm to Govt Tide
If you want to invest in oil , but stock in an upstream company , not oil futures.
Posted on 4/20/20 at 2:41 pm to Govt Tide
It's not that easy.
Posted on 4/20/20 at 2:42 pm to Govt Tide
Posted on 4/20/20 at 2:42 pm to Govt Tide
Futures have an expiration date, by which you either have to purchase the opposite position, sell yours, or actually take the product.
What's happened is a bunch of speculators bought May oil futures figuring the price would go up.
But the Russia-Saudi Arabia oil fight, plus worldwide demand declining due to COVID-19, left them holding the bag. So now they're dumping their holdings, and in some cases paying people to get them out of their mess.
What's happened is a bunch of speculators bought May oil futures figuring the price would go up.
But the Russia-Saudi Arabia oil fight, plus worldwide demand declining due to COVID-19, left them holding the bag. So now they're dumping their holdings, and in some cases paying people to get them out of their mess.
Posted on 4/20/20 at 2:42 pm to Govt Tide
Don’t buy a futures in oil right now unless you can take delivery of it. It’s negative because it’s a liability at this point.
Posted on 4/20/20 at 2:43 pm to Turbeauxdog
quote:
If you want to invest in oil , but stock in an upstream company , not oil futures.
This. Who are they going to pay to store all this oil nobody wants?
Posted on 4/20/20 at 2:46 pm to Govt Tide
quote:The oil futures you see being quoted on this board today is for May delivery. Those contracts expire tomorrow.
In other words, is now a good time to buy oil futures
The June and July contracts are selling in the $20's today.
quote:Speculating on any commodity futures contract is very easy.
It can't be that easy can it?
If you want to get to a million dollars doing that, the first thing you should to do is start with two million dollars...
Posted on 4/20/20 at 2:46 pm to Govt Tide
Posted on 4/20/20 at 2:48 pm to Govt Tide
I guess I don't know much about it either. May futures were trading at below zero today. Where can I buy some at the negative number? Does that mean they pay you not to buy it?
Posted on 4/20/20 at 2:48 pm to Nado Jenkins83
Clearest explanation I’ve seen
Posted on 4/20/20 at 2:49 pm to Govt Tide
Are the oil producers actually buying the negative contracts? They take the contracts and then deliver the oil to themselves?
Posted on 4/20/20 at 2:49 pm to RebelExpress38
It's not that complicated. Cant wait to see the melts when the price at the pump doesnt drop much
Edit Sally has blackface.
Edit Sally has blackface.
This post was edited on 4/20/20 at 2:51 pm
Posted on 4/20/20 at 2:51 pm to Nado Jenkins83
And notice no Karen was involved.
Posted on 4/20/20 at 2:52 pm to Quidam65
She is busy snitching on lawn crews
Posted on 4/20/20 at 3:00 pm to Nado Jenkins83
quote:
Nado Jenkins83
If that's legit, thanks it helped a lot.
Posted on 4/20/20 at 3:01 pm to Eighteen
That's why it's so dumb when people say they going buy some. Nobody wants it.
Posted on 4/20/20 at 3:05 pm to LSURussian
quote:
Speculating on any commodity futures contract is very easy.
If you want to get to a million dollars doing that, the first thing you should to do is start with two million dollars...
You told that right!
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