Market making in commodity futures is HFT. Just look at the movements in the orderbooks. NG looks like a nice example

<t>Hi, can anybody with some deeper insight in oil trading enlighten me a bit what the reasons for the the current spread in the Brent and the WTI are. Also, where does the mini-backwardation in CL result from? Is there any major US oil contract other than WTI that could be used as a proxy?Cheers, C...

cant help you there, but could you name a few of your favourite articles on mean reversion. would much appreciate that.cheers

in the long run, people may experience that the leveraged ETF underperformed the regular ETF although the index is higher than at the time they bought due to realised vol

what is it that banks dont like about people from prop shops? that they learned to survive w/o a big balance sheet?

good questions. dont know. would not think it is possible to short squeeze the gold market. would imagine there is to much physical around to borrow. the -1 pretty much lasted only for one day. I read that day and the day before there were massive outflows from physical ETF funds.

<t>this week, the efp for the aug future was traded at -1. sounds like a little free lunch for every larger holder of physical gold (assuming they intend to hold it for a few weeks). trade the efp, pocket 1$ and get your physical back in aug. what are the costs of physical settlement & delivery ...

A quick way to get the market's expectation of dividends in an index is the spread between index and future. If you look at the short end futures, there will be pretty much no interest component

<t>QuoteOriginally posted by: willsmithCaveat, I don't fully understand the difference between ETN, ETC and ETF. These are mainly legal differences, but one factor is you get different amounts of counterparty risk. In happy times, this won't make any much (any?) difference, but if banks or funds may...

<t>not sure if i would call it foolish. it makes assumptions and leads to a conclusion. that s what theorems do. if these assumptions are totally out of the world, you may call it the most useless theoem ever (although there is probably some fierce competition for that title). the fool is then the g...

<t>there is a difference in having a straddle and continuous replication. With buying the option and hedging it, you have an initial investment and through replication, you constantly suck money out of the market through realized vol by buying low selling high.If you just buy a straddle, you bet tha...

<t>QuoteOriginally posted by: daveangelQuoteOriginally posted by: CEexshow would that affect the exotics desks (not talking about precious woods here)? doesn't really work w/o a book, does it?perhaps its the end of exotics ? On the other hand, I think not. the outcome of all this is that banks will ...

how would that affect the exotics desks (not talking about precious woods here)? doesn't really work w/o a book, does it?

how would that affect the exotics desks (not talking about precious woods here)? doesn't really work w/o a book, does it?

<t>QuoteWhich is fine by me since the large banks closed most of the prop desks a year ago. If you want to look tough by banning something that no one is really doing that's fine by me, since by spending all of your time and effort banning something that no one is doing, it means that you have less ...