ICE UK Nat Gas (NGL)

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strix
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ICE UK Nat Gas (NGL)

Post by strix » Thu Sep 01, 2011 11:01 pm

I saw klatt_attack's post about NGL, so I guess I'm not the first to get frustrated with this one...

Anyway, ICE says UK Nat Gas is denominated in GBP/therm, and the contract size is 1000 therms/day, for however many days are in the delivery month. This we know.

CSI's factsheet says ALMOST the same thing - CSI uses pence/therm.

AND YET, both ICE and CSI will quote the price as ,e.g., 69.80?!!

Should I change the factsheet so it reads as 6980, or am I missing something here? The BPV value of 300 GBP seems to suggest such a change (assuming a 30 day month, of course).

Thanks in advance for any assistance from the NGL traders here.

zacharyoxman
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Post by zacharyoxman » Fri Sep 02, 2011 1:25 am

Quoted/Traded in XX.XX form...69.80, etc.

BPV should be listed as 300

Currency should be listed as GBP

Also, you must trade it in 5 lot increments

I hope this helps.

Zach

strix
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Post by strix » Fri Sep 02, 2011 1:45 am

But how do you reconcile the XX.XX quoted form that CSI uses with the 300 BPV?

If you're using pence/therm, then you've got (0.01 GBP/therm)*(1000 therms/day)*(30 days) = 300 GBP

GBP/therm, then, would mean a BPV of 30,000. So, if ICE also says XX.XX and GBP/therm, why shouldn't CSI be XXXX?

sluggo
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Post by sluggo » Fri Sep 02, 2011 7:44 am

viewtopic.php?p=34694&highlight=natural+gas#34694 (in the Trading Blox Support area of this website)

viewtopic.php?p=20189&highlight=insurance#20189 (in the general area) -- and note the horrifying follow-up post by "nickmar"

viewtopic.php?p=29612&highlight=natural+gas#29612

zacharyoxman
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Post by zacharyoxman » Fri Sep 02, 2011 9:48 am

As Sluggo masterfully points out, even the exchanges muff it up from time to time.

Lets reconcile directly from an open trade (snapshot sheet from an MFG account):

open trade entry price 68.50
last price 65.30

68.50-65.30 = -3.2 points
-3.2 * 5 contracts = -16 points
-16 x 300GPB = -4,800 GBP

check and check :)
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strix
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Post by strix » Fri Sep 02, 2011 6:07 pm

I'll be damned! Thanks guys. It looks like the lesson here is, When in doubt, fire off a 1 lot and check the statement.

zacharyoxman
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Post by zacharyoxman » Sun Sep 04, 2011 3:18 pm

Or put a post up and see if anyone else has fired off a lot and can screen print a statement for you ;)

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Post by Aaron01 » Sun Sep 04, 2011 3:36 pm

Additionally, I like to double check my full point values by using a mock portfolio from a service like barchart.com, or others. There may be some errors inherent to a free service, especially when you consider that the exchanges themselves can make mistakes. But it adds an added layer of confirmation, which may be cheaper than making a quick live trade. I say may, because if it is inaccurate it could lead to some costly errors :oops:

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