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OOO

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$19.36 betashares crude oil index etf-currency hedged (synthetic)

Wow! Thanks for sharing that with us! It sure surprised me just...

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AverageBob

11 Posts.

22/04/20

20:22

Post #: 44198025
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Originally posted by Jok178: ↑

I use CMC Markets CFD because it gives me huge margin and cheap brokerage on international markets. The story on why I use them for oil is more complicated:

Before the crash I had been making ~40% per month on my medium risk strategy (CFDs on equities & funds) and was ecstatic, planning my early retirement. When the crash hit my risk control plan (automated) worked perfectly and even though I dropped 30% in unrealised terms I still made 20% for the month. My trading plan doesn't work in this environment, so I decided to try go long oil and make a 4 bagger as I am very bullish on it long term.

CMC has a "cash" product that follows the closest expiry futures of most commodities and index's, there is no roll over and it would actually pay me, (yes, you read that right) 7% interest to hold these oil contracts so I figure it can't possibly go tit's up. I was way out of my depth. The holding costs on my longs went from paying me 7%PA every morning to me paying 220% every morning. At one point yesterday I was down 90% within 2 days and missed a margin call by 30 minutes using pure luck. Luck hit me again today as my short hedge in Brent (still pays me 175%PA every morning) drilled and now I am back to where I was at the start of the crash. I am almost out of oil entirely with the exception of the short Brent which I expect to drop much further as the contract is about to expire.

I still crave that oil exposure so tonight I am going to research $FUEL, but I don't intend to buy until it's near ATL again as I believe the equity markets are very close to crashing again.

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Wow! Thanks for sharing that with us! It sure surprised me just how quick things can go bad, I lost 25k in the blink of an eye. The main thing I think is to not rely on hope, not to be the proverbial "frog in the frying pan" and to try and wait it out. When things are looking too risky don't hesitate and get out. That's what "saved" me anyhow.
Like you, I also want exposure to the crude market and FUEL is the one I think I'll go for.

OOO Price at posting: $19.36 Sentiment: Sell Disclosure: Not Held
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