100 year future contracts on GT247

[saturnz]

So I noticed this today and immediately went long on a few commodities.

Tomorrow when the stock market derivatives become tradeable I will probably go long there too.

I can't see any downside risk?

 

[FrankieK]

So I noticed this today and immediately went long on a few commodities.

Tomorrow when the stock market derivatives become tradeable I will probably go long there too.

I can't see any downside risk?

Before you go near any futures contract make sure you understand the concepts of contango, backwardation and forward term structure of futures contracts.

 

[saturnz]

Before you go near any futures contract make sure you understand the concepts of contango, backwardation and forward term structure of futures contracts.

LOL

I've been using GT247 since they opened in 2006 or something

do you understand what it means that you can now trade in a contract with effectively no expiry date?

 

[Thor]

LOL

I've been using GT247 since they opened in 2006 or something

do you understand what it means that you can now trade in a contract with effectively no expiry date?

The stuff of dreams!

I would long the USD/ZAR

Ie shorting zar.

How does overnight costs work on a 100 year future?

 

[saturnz]

How does overnight costs work on a 100 year future?

the only cost is in the spread

 

[Thor]

Then I dont see a downside to this

 

[bchip]

If you havent figured out the downside to a product it only
means you havent done enough research...

 

[Thor]

If you havent figured out the downside to a product it only
means you havent done enough research...

Definitely, this is not my forte.

 

[FrankieK]

LOL

I've been using GT247 since they opened in 2006 or something

do you understand what it means that you can now trade in a contract with effectively no expiry date?

Congratulations and yes.

 

[saturnz]

If you havent figured out the downside to a product it only
means you havent done enough research...

well clearly you are the expert speaking in generic terms but supplying no actual facts to the specific point

so given all other things constant, how does risk increase when a derivative such as the one on GT247 goes from 3 months to 100 years?

In effect you remove the potential of realising the costs of short term volatility while still remaining exposed to it. Moreover you can hedge with a single once off commitment as opposed to renewing contracts every 3 months

if that is a downside then you have absolutely no idea what you are talking about

 

[FrankieK]

Could you provide more info as to which commodities you are referring to.

 

[saturnz]

Could you provide more info as to which commodities you are referring to.

could you provide an explanation as to how that would change the risk profile

I don't see the relevance.

In any event if you do not use GT247 and its products then its going to be difficult to engage with you.

Maybe take your own advice and first understand how GT247 (or equivalent) works then come back to me.

 

[FrankieK]

could you provide an explanation as to how that would change the risk profile

I don't see the relevance.

In any event if you do not use GT247 and its products then its going to be difficult to engage with you.

Maybe take your own advice and first understand how GT247 (or equivalent) works then come back to me.

O god. Never mind.

 

[bchip]

if that is a downside then you have absolutely no idea what you are talking about

if you see no downside to this product, then why not bond up and go "all in"?
Remember theres no volatility right, so that means you dont even need free margin
...so use every cent and go SUPER long

theres obviously no downside, cause its Rollovers that cause risk on futures...:wtf:

 

[saturnz]

if you see no downside to this product, then why not bond up and go "all in"?
Remember theres no volatility right, so that means you dont even need free margin
...so use every cent and go SUPER long

theres obviously no downside, cause its Rollovers that cause risk on futures...:wtf:

that is actually what I'm considering doing now, although I wont be using any leveraging

and I'm glad you actually saw the point I was trying to bring across

 

[bchip]

that is actually what I'm considering doing now, although I wont be using any leveraging

So all your doing is buying Satrix Resi...?

[Slow clap]...