This week, I lost $9749.5 in\u00a0offsetting\u00a037 short corn contracts. \u00a0On the other hand, I gained $1543 on buying and selling 2 wheat contracts. \u00a0Here’s a recap and highlight of what happened.<\/p>\n
Since I got myself into the situation of holding a large number of contracts again, I was looking for ways to offset them not only timely but also very carefully this time. \u00a0At first, I tried to use Price Limit and Stop Loss orders to do that. \u00a0However, the futures prices of corn didn’t change much on Monday and didn’t hit my price limit or stop loss price. \u00a0Although, the prices of corn on Monday went down in my favor, \u00a0I did anticipate that the prices would rise and rise quite rapidly in the next few days due to the damage done by the hurricane Sandy. When I was\u00a0contemplating\u00a0what to do, I got a message from Yijeong and she suggested that I could use Time Limit order to offset my short corn contracts at the open price (ie. setting the time: 9:30am) when I was still making profits. \u00a0I did so. \u00a0However, it turned out that when TradeSim processed more than 1 contract, there would be delay even though it’s a time\u00a0limit\u00a0order. \u00a0The corn prices rose on Tuesday and my 37 short corn contracts were offset with a major loss.<\/p>\n
37 shorts on C2Z: \u00a0price in: 739.75, price out: 745.00 \u00a0(this price was actually higher than the day’s highest price which is still puzzling me), realized loss:\u00a0$9749.5<\/em><\/p>\n On Wednesday, I got up early and started to look at the news. \u00a0It appeared to me that the wheat price would rise that day based on the following and \u00a0news.<\/p>\n I went long on 2 wheat contracts, W2Z. \u00a0 The wheat futures prices went up on Wednesday, as well as Thursday. I placed a Price Limit order on Wednesday night to offset these contracts to lock in profits. \u00a0Both contracts were offset on Thursday.<\/p>\n 2 longs on W2Z:\u00a0price in: 869.00, \u00a0price out: 883.25, realized gain: $1543<\/em><\/p>\n Overall, I lost $8206.5. \u00a0Although I lost much more than I gained. \u00a0I think I have improved on strategies and analysis, so I am happy. =]<\/p>\n <\/p>\n References:<\/a><\/p>\n 1. \u00a0Javier,\u00a0Luzi Ann and Sedgman,\u00a0Phoebe.\u00a0(2012, Oct 31). Australian Wheat Exports Plunging Most in Six Years: Commodities. <\/em>Retrieved from\u00a0<\/em>http:\/\/www.bloomberg.com\/news\/2012-10-30\/australian-wheat-exports-plunging-most-in-six-years-commodities.html<\/a><\/p>\n 2. \u00a0Packham,\u00a0Colin \u00a0and Naveen. (2012, Oct 31).\u00a0<\/em>Australia’s early wheat harvest shows lower protein.\u00a0<\/em>Retrieved from\u00a0http:\/\/www.grainews.ca\/news\/australias-early-wheat-harvest-shows-lower-protein\/1001809854\/<\/a><\/p>\n\n