Wt Wti Crude 2x Discussion Threads

[cottlet] 14/6/2020 17:39

M W let us know if you find out why!!
is it something to do with US$ exchange rate?

[m w] 01/6/2020 21:02

Bought this when oil was 15 dollars a barrel now it's 34 and l haven't broken even yet. what's the point of this other than to lose money

[sideshowbull] 04/5/2020 20:05

I am no chartist but I am pretty sure I am selling June.


IMO

[adyfc] 01/5/2020 20:22

Futures roll fees.

[m w] 01/5/2020 08:19

I bought this when oil was $15 a barrel I am now showing a 50% loss and oil is at $19 how is that possible

[fidra] 28/4/2020 10:36

Socrates thank-you for posting the information.

[thewealthofsocrates] 28/4/2020 09:44

Probably wiser to be bearish now.

[nametrade] 28/4/2020 00:48

wow LOIL had hell of a ride in 2008...

[thewealthofsocrates] 28/4/2020 00:02

LBRT, SBRT, LOIL, SOIL are debt securities backed by swaps (payment obligations protected by collateralized bonds, the largest being Japanese treasuries). The NAV price rises or falls are designed to emulate Brent or WTI, so there is a lag between the prices, but fees & leverage are put into the bid-ask spread.

[thewealthofsocrates] 28/4/2020 00:00

hxxps://www.wisdomtree.eu/en-gb/products/short-leveraged-etps/commodities/wisdomtree-wti-crude-oil-2x-daily-leveraged

hxxps://www.wisdomtree.eu/en-gb/-/media/eu-media-files/key-documents/factsheet/etf-securities/factsheet---wisdomtree-wti-crude-oil-2x-daily-leveraged.pdf

WisdomTree WTI Crude Oil 2x Daily Leveraged is designed to enable investors to gain a 'leveraged' exposure to a total return investment in WTI crude oil futures contracts by tracking the Bloomberg WTI Crude Oil Subindex (the "Index") and providing a collateral yield. A daily leveraged exposure means that the product is designed to reflect 200% of the daily percentage change in the Index level. For example, if the Index was to decrease in value by 5% on a particular day, the product is designed to decrease in value by 10% on that day (minus fees and expenses). WisdomTree WTI Crude Oil 2x Daily Leveraged is an exchange traded commodity ("ETC"). It is not a UCITS product. Securities in this ETC are structured as debt securities and not as shares (equity) and can be created and redeemed on demand by authorised participants and traded on exchange just like shares in a company. The ETC is backed by swaps. The payment obligations of the swap counterparties to the Issuer are protected by collateral held which is marked to market daily. The collateral is held in segregated accounts at The Bank of New York Mellon. Details of the collateral held can be found in the Collateral section of the WisdomTree website (www.wisdomtree.com).

hxxps://www.wisdomtree.eu/en-gb/products/short-leveraged-etps/commodities/wisdomtree-wti-crude-oil-1x-daily-short

hxxps://www.wisdomtree.eu/en-gb/-/media/eu-media-files/key-documents/factsheet/etf-securities/factsheet---wisdomtree-wti-crude-oil-1x-daily-short.pdf


WisdomTree WTI Crude Oil 1x Daily Short is designed to enable investors to gain a 'short' exposure to a total return investment in WTI crude oil futures contracts by tracking the Bloomberg Crude Oil Subindex (the ""Index"") and providing a collateral yield. A daily short exposure means that the product is designed to reflect minus one times the daily percentage change in the Index level. For example, if the Index was to rise in value by 5% on a particular day, the product is designed to decrease in value by 5% on that day (minus fees and expenses). WisdomTree WTI Crude Oil 1x Daily Short is an exchange traded commodity ("ETC"). It is not a UCITS product. Securities in this ETC are structured as debt securities and not as shares (equity) and can be created and redeemed on demand by authorised participants and are traded on exchange just like shares in a company. The ETC is backed by swaps. The payment obligations of the swap counterparties to the Issuer are protected by collateral held which is marked to market daily. The collateral is held in segregated accounts at The Bank of New York Mellon. Details of the collateral held can be found in the Collateral section of the WisdomTree website



Due to unprecedented levels of volatility in WTI crude oil contracts, risks to investors in short & leveraged exchange traded ETPs (ETPs) tracking these contracts have materially increased. We have therefore taken the decision to temporarily halt creations to our short & leveraged ETPs tracking WTI crude oil. This decision is limited to two short & leveraged ETPs tracking WTI crude oil listed and we do not currently intend or expect to expand this decision beyond short & leveraged oil ETPs. You can find more information about this decision and implied risks and consequences for investors here.

[fidra] 27/4/2020 17:55

I think you need to look at what the content of the instrument is.it may not be just daily oil but futures as well.

I don’t myself know but looking at this loil was an eye opener .

[stirfry13] 27/4/2020 17:23

I thought SOIL was supposed to be the short but that only went up about 8% from the open.

[laptop15] 27/4/2020 16:55

It would have made a great short....lol..Never seen anything drop so much

[stirfry13] 27/4/2020 16:38

Sure thing fidra. Another 30% drop today is just extraordinary.

[fidra] 27/4/2020 16:32

A bet there are a few thanking their lucky stars for not buying this last week.

[thewealthofsocrates] 27/4/2020 15:38

hxxps://www.wisdomtree.eu/en-gb/products/short-leveraged-etps/commodities/wisdomtree-brent-crude-oil-2x-daily-leveraged

- "WisdomTree Brent Crude Oil 2x Daily Leveraged is designed to enable investors to gain a 'leveraged' exposure to a total return investment in Brent crude oil futures contracts by tracking the Bloomberg Brent Crude Subindex (the "Index") and providing a collateral yield. A daily leveraged exposure means that the product is designed to reflect 200% of the daily percentage change in the Index level. For example, if the Index was to decrease in value by 5% on a particular day, the product is designed to decrease in value by 10% on that day (minus fees and expenses). WisdomTree Brent Crude Oil 2x Daily Leveraged is an exchange traded commodity ("ETC"). It is not a UCITS product. Securities in this ETC are structured as debt securities and not as shares (equity) and can be created and redeemed on demand by authorised participants and traded on exchange just like shares in a company. The ETC is backed by swaps. The payment obligations of the swap counterparties to the Issuer are protected by collateral held which is marked to market daily. The collateral is held in segregated accounts at The Bank of New York Mellon. Details of the collateral held can be found in the Collateral section of the WisdomTree website (www.wisdomtree.com).

*Formerly ETFS 2x Daily Long Brent Crude"


"The Index is designed to reflect the movement in the price of the Brent crude oil futures contracts used in the Bloomberg Commodity IndexSM that are continuously rolled on a pre-determined rolling schedule. Each trading day the ETC will reflect 2 times the movement of the Index relative to the previous day's close (excluding fees and expenses). Therefore any losses will be magnified in comparison to a decrease in the value of the Index. Leveraged ETCs are only intended for investors who understand the risks involved in investing in an ETC with leveraged exposure and who intend to invest on a short-term basis.

Any investment in a leveraged ETC should be monitored on a daily basis to ensure consistency with your investment strategy. Please refer to the section entitled "Risk Factors" in the relevant prospectus for further details of these and other risks associated with an investment in leveraged ETCs. You should consult an independent investment adviser prior to making an investment in a leveraged ETC in order to determine its suitability to your circumstances.

The price of securities in this ETC is generally quoted in US Dollars. To the extent that a security holder purchases securities in another currency, the value will be affected by changes in the exchange rate"

[thewealthofsocrates] 27/4/2020 15:13

kirk 6
"this isn’t actually an oil play"
- There is a lag. Play around with your chart settings.


Some LBRT trades happening now. (last pic, at the bottom)

[thewealthofsocrates] 27/4/2020 15:11

All I can say is that if you are in the ftse 100, get out.

[thewealthofsocrates] 27/4/2020 15:08

Selling off all my funds. I will support LBRT.
More potential upside with oil than stocks at the moment imho.

[kirk 6] 27/4/2020 15:06

Agreed this isn't actually an oil play like I though as it doesn't track the price of any underlying oil market other than when it goes down. So you can't even make money when oil price rises.

[thewealthofsocrates] 27/4/2020 13:12

Alternatively, you can buy a short etc for WTI or Brent.
For Brent it's WisdomTree Brent Crude Oil 1x Daily Short (SBRT) & if you plug in a limit order at 80 for instance, this stock will get shorted and the trader shorting brent will stop. Similar idea for the WisdomTree short of WTI: SOIL.

[thewealthofsocrates] 27/4/2020 13:04

Problem with WTI is that there's no storage in the US.
Not a problem for Brent...

[thewealthofsocrates] 27/4/2020 13:02

Sorry, I was talking about LBRT.
I did trade LOIL the other day, but I'm out of that trade.
I've been rotating between the different tickers, WTI & Brent, both long and short.