Wt Wti Crude 2x Discussion Threads

[stevieweebie2] 22/4/2020 11:44

Hey guys

Just a 'big up' to all you folks who advised Kirk on this, he should be grateful, I had a dip many years ago and it wasnt even the leveraged play LOIL, but with Contango and Backwardation it made it hard work to make money so NO WAY would I be using 2 x L trying to catch the bottom here, its for folk who know exactly what they are doing Kirk, its to be bought and sold the same day if your giving it a go sport.

[kirk 6] 22/4/2020 11:41

But the crude futures market is risen and has risen for the last 2 hours... That's guys anyway sounds like nothing will make this go up - so there is no risk here as risk implies possibility of reward. Just the certainty of losing money

[saltaire111] 22/4/2020 11:33

This etf is leveraged x2 Bloomberg WTI crude futures market. It is effectively a daily contract, revises on a daily basis. You buy the contract at a set price and you get a magnified effect two times the movement in the Bloomberg oil future market (the index that the ETF tracks), crystallised on a daily basis. If the index increases by 2%, the ETF will deliver a 4% return. If the index moves against the price by 2%, the ETF delivers a 4% deficit.

Hope this goes some way to explaining how the instrument works.

It is a significant gamble (particularly in today’s market) and should be a small part of an alternatives strategy in an portfolio.

Salty.

[marceau] 22/4/2020 11:33

Bloomberg WTI Crude Oil Subindex Total Return is the underlying for this - ALL AT 2 x LEVERAGE RECALCULATED DAILY. It's risk stacked on risk stacked on risk.

[marceau] 22/4/2020 11:22

Kirk, it doesn't track spot oil. It tracks a Bloomberg index of futures prices. You will be wiped out at current prices if you hold this. don't put money into something you don't understand!

[marceau] 22/4/2020 11:19

To Kirk and anyone else thinking of using this to 'buy the dip'- you CANNOT buy and hold this instrument. This ETF will be forced to rollover it's holdings to the Jul WTI contract in 2 weeks. At current prices that will create an immediate 50% loss. A similar instrument (USO) had to suspend trading yesterday in order to restructure itself and avoid a 100% wipeout. These ETFs are in a dire situation and are guaranteed massive losers at current prices. Please, please, please gain an understanding of what you are investing in.

[kirk 6] 22/4/2020 11:14

No I certainly don't understand It. I thought it was a leveraged oil play as it says on the wisdomtree WTI crude etf explanation. Can you explain what other than market orders causes the price to move then!? So the underlying when down overnight and this dropped on open which was expected- now the WTI oil has risen and the price hasn't gone up as expected

[marceau] 22/4/2020 11:09

Kirk, you clearly don't understand the instrument you are trading. It works nothing like a normal index tracker. Over anything other than the short term it will bear no resemblance to the underlying price.

[kirk 6] 22/4/2020 10:58

The underlying market has risen 9% wti in the last hour

[kirk 6] 22/4/2020 10:57

Everything to do with oil has gone up for the past 2 hours This should be 2* the increase ??Anyone shed any light

[kirk 6] 22/4/2020 10:44

Brent crude surging back up now

[kirk 6] 22/4/2020 10:23

Can anyone clarify why this hasn't risen since open at least with oil going up for the last 2 hours admittedly from low point but surely this can go up aswell as down?

[fidra] 22/4/2020 10:19

Wisdom tree just served redemption order on their 3x daily short
3OILM

[kirk 6] 22/4/2020 10:08

Oil rising now and this isn't ?

[kirk 6] 22/4/2020 10:00

Should be much higher

[saltaire111] 22/4/2020 08:53

Starting to lift a little.

[kirk 6] 21/4/2020 22:06

What can this go down to though down to zero? Then what ?

[saltaire111] 21/4/2020 16:31

I just bought £20k here. Bought three other oil/gasoline etfs today too. Spent £80k in one day in oil related investments, and I’ve now spent about £200k in two weeks in oil etfs and shares.

Hate to say it, but we now need a war to break out in the Middle East!

Only joking, but that would reverse the incredible declines we’re seeing.

A once in a lifetime buying opportunity (as long as the etf doesn’t go bang).

Salty

[kirk 6] 21/4/2020 10:49

Now oil bouncing back hard and this ain't moving ?

[kirk 6] 21/4/2020 10:41

For example now oil is bouncing from 21150 and this has not? Why?

[kirk 6] 21/4/2020 10:41

Don't know whether to buy more or not here what do you think ? Will this go to 0?

[davidbirkett] 21/4/2020 07:57

Well Kirk looks like a good day to buy . What's your plans

[kirk 6] 20/4/2020 21:13

Same here bought some today and will buy more tomorrow - very low and big upside when economy gets back on track

[davidbirkett] 20/4/2020 14:40

Yes Kirk I'm on this just bought some last week. I am expecting it may go lower . In which case I will buy more. Only small chunks at the moment. As a 5 year play it's a no brainier in my view.