Futures contract

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Coming up on today's program, cattle futures are holding steady or trending upward amid the fall cattle run.

We'll have the latest on that with a portfolio manager with Ventum Financial in Winnipeg, David Derwin.

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SaskAg Today will return in one minute's time.

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Cattle futures are holding steady or trending upward amid the fall cattle run.

Portfolio manager with Ventum Financial in Winnipeg, David Derwin, says cattle futures are up 5% from the spring and summertime highs.

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hello YouTube welcome back to my channel my name is Patrick Boyle and this is Patrick Boyle on finance and today's video is a little bit different to my usual videos in that I've just really received a lot of questions about what's going on in the futures market today and I put up all these videos explaining financial derivatives to people and so I thought I'd give a quick update on what's going on so it's april 20th today 2020 april 28 of course being elon musk's favorite date but what's happened today is that oil futures the may oil futures contract has fallen into negative territory so let me explain what that means okay so this is the first time in history that that the oil futures have traded in negative territory and this is also the largest fall in price in record going back to 1983 and so what's happening exactly a lot of people have been joking that they should run out to the petrol station and fill up their car for for free or be paid to fill up their car well that that's not actually what's happening but it's fairly close to that, at least in idea.

So today, the June contract, the one that's expiring next month, is at $20.03 a barrel, at least as of the time of recording this video.

But the May oil contract fell into a negative price.

So you might be selling the May contract, buying the June contract, and then in a month's time you'll be selling the June contract and buying the July contract.

Now, a few of you are possibly thinking, but Patrick, don't you know about ETFs? Well, I do know about ETFs, but if you're an ETF fund manager, you don't have a huge storage area filled with oil, a big lake of oil that you store it in.

you're still trading these futures right so if you put your money in an ETF the ETF manager takes that money and uses it to invest in oil futures so you're kind of still even with ETFs even though that looks like something that never expires it's still tied to this idea of expiration and so once again an oil ETF an ETF stands for electronically traded fund for those of you who haven't heard that term before Gives its investors an exposure once again to a financialized version of oil.

So it's not actual oil which you have to store somewhere.

And we'll see you again for more Ag Squawk.

Futures trading involves risk of loss and is not suitable for everyone.

Past profits are not necessarily indicative of future results or profits.

Then let it go through, limit filled, I have that Bitcoin now purchased.

Now, futures trading is definitely available, and I love using 2Bit for futures trading.

I've done it for many years.

Futures Trading, we have an entire tutorial in the classroom built out for anyone that wants to go from zero to hero in trading in our school community at Discover Crypto School, where you get the Trading Futures full course, volume profile trading, the DC Intelligence Hub for the day-to-day information and the information flow, and a whole lot more within this group.

Now, it's important to remember to only trade and risk on leverage what you're willing to lose.

Only invest that money that you feel comfortable going in and fighting for more upside width.

This is up until Friday.

The blue line there is the year to date return of the Abbey Capital Futures Strategy.

And I think they're up around 4.2% with the S&P down about 21%.

So that's the recent returns that's the year to date returns now in truth over the last couple of years as i've said a lot of this stuff has gone sideways but maybe we'll see how it does in an environment like this So the next thing up is volatility arbitrage.