This morning I was looking at a free trial crude oil trading session. CL.
They had a fair market value of 93.94 when CL was trading at 93.54. right now it is trading at 94.2x. I wonder where did they get the fair market value? Any one has an idea here?
Thanks a lot!
where to get the fair market value for crude oil (cl)
Started by
q4wer
, Nov 13 2013 01:18 PM
2 replies to this topic
#2
libertas
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- Traders-Talk User
- 351 posts
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Posted 13 November 2013 - 01:42 PM
This morning I was looking at a free trial crude oil trading session. CL.
They had a fair market value of 93.94 when CL was trading at 93.54. right now it is trading at 94.2x. I wonder where did they get the fair market value? Any one has an idea here?
Thanks a lot!
Fair value is calculated based on the cash price of the commodity, the time left to expiry, interest rates and costs such as storage charges. In other words, if you were to purchase the contract amount of the commodity at the current cash price and you wanted to sell a contract for future delivery of the commodity, you would have to receive the fair value price to break even at delivery after you paid interest and other charges.
I would strongly suggest you educate yourself on the technical aspects of futures trading before attempting to trade.
Edited by libertas, 13 November 2013 - 01:45 PM.
#3
q4wer
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- Traders-Talk User
- 2,180 posts
Member
Posted 13 November 2013 - 03:08 PM
Thanks a lot! I thought that the value was from wall street somewhere...
This morning I was looking at a free trial crude oil trading session. CL.
They had a fair market value of 93.94 when CL was trading at 93.54. right now it is trading at 94.2x. I wonder where did they get the fair market value? Any one has an idea here?
Thanks a lot!
Fair value is calculated based on the cash price of the commodity, the time left to expiry, interest rates and costs such as storage charges. In other words, if you were to purchase the contract amount of the commodity at the current cash price and you wanted to sell a contract for future delivery of the commodity, you would have to receive the fair value price to break even at delivery after you paid interest and other charges.
I would strongly suggest you educate yourself on the technical aspects of futures trading before attempting to trade.
