ETFS Short Crude Oil (SOIL) is designed to change each day by minus one times (-1x) the daily percentage change in the DJ-AIG Crude Oil Sub-IndexSM (before fees and adjustments). Therefore if the DJ-AIG Crude Oil Sub-IndexSM falls (or rises) by 1% in one day, then ETFS Short Crude Oil will rise (or fall) by 1%. In addition, an interest component is added each day to give a total return investment.





s7.39 or 4.80P GOOD STARTING POINT. 13 FEB NOW $3.50 or 2.50 half price sorry.

Sheds some light on situation...
http://www.thenational.ae/article/20090207/BUSINESS/386867450

march nymex (settles 20 feb) is taking a real hammering again ..... down a further $0.65 to $35.40

http://www.ft.com/cms/s/0/6cc84c30-f867-11dd-aae8-000077b07658.html?nclick_check=1

Falco, yeh already been on there voicing some concerns earlier, it might be that ETF's may suit me better, but miffed its CFD's and dollar quoted, instead of Spreadbet and stirling, i wanted to scalp - still dont know whether to bother, i opened a daily earlier but you have to phone broker for rollover before 7.30pm each day, its all a bit mickey mouse, cos if trades go wrong way they will turn out to be a longer term hold (until oil recovers), therefore ETF's would be favourable for reasons given...
regards

Liked this bit in particular...:)


If the index falls by 50% or more in one day, an investment in a Leveraged ETC will lose all of its value

hard to believe crude has fallen so aggressively ..... a sharp bounce must surely be due, but is one brave enough to pre-guess it

I've got an order in for $40 april, quite unusual to get a drop of more than $3 in a day. Lows seem to often occur at 1:30 and 730 respectively, wti has certainly lost the plot and the head honchos at Nymex will be under a lot of pressure not only because of this pricing abberation but also because I gather a lot of OPEC would rather be denominated in a non dollar currency

It appears a certain falseness that crude is (supposedly) $35 today, because as far as i can work out you will be paying $42 in a few days once march expires...

Have you read the book 'Rigged' Ted it's fiction but sheds quite a lot of light on Nymex

topped up today, either bravely or foolishly, time will tell

long i take it

ETFS Leveraged Crude Oil (LOIL) is designed to change each day by two times (+2x) the daily percentage change in the DJ-AIG Crude Oil Sub-IndexSM (before fees and adjustments). Therefore if the DJ-AIG Crude Oil Sub-IndexSM rises (or falls) by 1% in one day, then ETFS Leveraged Crude Oil will rise (or fall) by 2%. In addition, an interest component is added each day to give a total return investment.

Cynic,
yes long.

so you should have done OK .... did you close out?

not yet
will look on monday morning. am prepared to hold if need be as believe oil will eventually return to 60-70 dollars or more

don't disagree at all, but getting the timing right is the diff part

tell me about it in at 331p,296p and finally 244p. Thought i had got it right each time but obviously not. hope to have managed it now but not sure if enough to break even/make profit on a complete sale. might have to take profit on last batch and bide my time for the rest. in no hurry.

Where is the rise here, oil was up >10% on friday, but still this goes down????

my thoughts exactly

Thought something funny was going on here so I contacted ETF securities to get the real story on LOIL. Apparantly LOIL is currently tracking the MAY 2009 contract for crude oil NOT the spot price which has risen over the last few days.

At the begining of each month the contract will roll over to next odd month futures contract. Therefore between april 6-10 one fifth of the contract will roll over each day until 100% of the contract is represented by the JULY 2009 crude oil price (remember it follows the odd months). Therefore if you want to see the true underlying value of LOIL you must watch crude may 2009 futures. Best place to see this is the NYMEX web site.

From what i can see the MAY contract has not moved liked the spot price which may explain the crappy valuation we are seeing now. Hope this helps. Fortunately I only had a small investment in this so am considering bailing now as I bought at 3.52 (USD). I'm sure there is more to how this ETF is valuated but it seems to complex for a private investor like me to invest much more time in this. CRUD is probably a better/safer option due to the price errosion we are seeing in LOIL.