Carbon Trading (carbon permits/credits/crypto_tokens!)

Carbon (Emission) Trading...

I believe this might the next big thing... Imagine even a carbon (permits) based cryptos; mind=blown
There are strong initiatives in EU at least.. to reduce the carbon footprint (by law, rather soon, 5years or so)...
The companies that won't will be either banned (and/or their products) or will have to pay a (heavy) fee...
There might a be a strong and expanding market for this when companies will buy/sell carbon permits... and I believe the pure trading will also be available...

Anyone know anything more about the Carbon Trading option?

More on the subject:
https://www.investopedia.com/terms/c/carbontrade.asp
https://www.fern.org/news-resources/...n-trading-584/
https://www.computerworld.com/articl...r-trading.html

People, just remember.. FX was "low image" game in the early 70s... People were fading away at parties if anyone mentioned "I am in the FX"... some years/decades later.. everyone wanted to become RICH overnight.. and everyone were FX "experts/traders"... Anyone that bought newspaper for a buck felt good to be in the "financial game"... Many of the "financial newspapers" are not targeted for financiers at all.. just for people pretending/wanting to be one...

Crypto.. People were laughing their asses off.. if anyone mentioned "play/geek" money aka crypto/btc... But now... everyone is talking about crpytos/blockchain (like those are synonyms). Even some initial (skeptics) are trading now, even if they don't believe it, but sure as hell do love to ride it

And now CARBON MARKETS... Most people are not even aware it exists.. the same as was for FX, crpyto/BTC... And once it might become general knowledge... it might already be (too) late.. So we have to act now... to BE FIRST... Do you want to be SMARTER, CHEAT or just be FIRST (easiest)? See clip below:

Some numbers that might already impress you.... We are all aware of the global warming and carbon emission standards, right? So what do you think will happen on this curse (trajectory) of events?

"European Emission Trading System (ETS)" etc...

1. https://www.theguardian.com/environm...ays-world-bank
2. https://www.reuters.com/article/us-g...-idUSKCN1PA27H
3. http://www.climateaction.org/news/gl...ays-world-bank

Also check the official EU website for what carbon level are they targeting:

1. https://ec.europa.eu/clima/policies/ets_en

CRAZY potential...

Please share how to best enter the market for prop trader... any good broker (from practice) for this etc?

Be first!

Well I researched a little deeper.. It seems that the potential earnings are crazy!
What I have discovered till now is (unverified - would like to recheck and try/test the actual transactions)...
"Knowns":

1. There seems to be no SPOT (carbon emission trading)... BUT
2. there seems to be developed (futures) trading... that ALL can participate.. either the actual companies (factories, power plants etc...) that need to buy/sell emission coupons... AND also traders.. both trading companies and private people aka natural persons.
3. It seems that the price can COLLAPSE but can also INCREASE 5-fold in a year... without leverage of course..

Open questions (please answer if you know):

1. Still not sure how to trade on decline.. aka SHORTing... not sure if it possible as in "normal" futures, selling the options etc..
2. Would love to have SPOT market
   1. Would love to have broker that would allow "standard" SPOT trading, with leverage and all...

   
   
   
   

3. BONUS: Would love to have broker that can be connected to TradeExplorer (TE)...

It seems that it is rather standard "market reasearch" and price modelling market... based on that.. one can BUY and hopefully SELL/SHORT the market.. hopefully with leverage... The price is a combination, from the quick glimpse.. of economy forecast (it drops in recessions since factories in decline etc), overall trends in production and/or CO2, new CO2 reduction technologies etc... Some cross-trends.... But should one NAIL the trend or swings... the profits are endless.. It is like BITCOIN some stages back... By the time everyone would know about this, it might be rather/too late... So I would advise to join me.. to be among the FIRST! See the clip in previous post... Quote here: "There are three ways to make a living in this business: be first, be smarter, or cheat. Well, I don't cheat. And although I like to think we have some pretty smart people here in this room, it sure is a hell of lot easier to just be first." -- Margin Call

Well wont't be first, some already made good money, but still (first) in some beginning stage I believe...

Already found some companies, even local ones (that is in particular impressive in my small country) that is already pulling good money out of this and offering trading services to people...

Some info: page 4 here: https://www.synapse-energy.com/sites...ast-66-008.pdf

The problem atm is that the current price is 20USD per metric ton already... So the research would have to be much deeper should one bet/trade on the increase... But it would be almost no-brainer should the price drop to bellow 5 USD for example.. as it was rather recently..

I am rather excited about this.. Please contribute with your research/experience if you can...

Last price 25EUR/ton, sold today... https://www.eex.com/en/market-data/e...ion-allowances

Ok finally, here is the CHART with history...
https://sandbag.org.uk/carbon-price-viewer/

Seems pretty stable atm... would need leverage maybe to extract good juice.. or sell options, if possible... not sure yet...
would like to see the actual trades/transactions and all conditions...

Good CHART! (snapshot below - do you see the potential?)
https://markets.businessinsider.com/...ion-allowances

WARNING Massive PROFIT potential... Hope we can group our efforts in research and trade...

Wow seems one of the more recognised brokers is allowing this Carbon Emission aka CO2 Trading...
Seems to allow BUY and SELL (long/short)... margin is 10%.. CFDs...
https://www.ig.com/uk/commodities/ma...banner-dismiss

OK opened DEMO account at IG, to test this.. seems like it is possible to trade CO2 without much problems.. but couldn't place order since market not open atm..
It seems it is rather "place and forget" trade by design.. since it seems the current trades/contracts are for DEC-19... Will check further... I like what I hear/read so far... Guess it could also be linked as TradeExplorer (TE) since it is IG...

Well the more I check or ask around, the greater (obvious) potential in this.. I guess people are waiting for it to become "public knowledge", similar to BTC...
but now many jumped on the (btc) train, expecting to raise my similar factor.. not going to happen... not enough wealth in the fore for it to jump that much...
Anyway, there is opportunity here, in CO2... guess until the hype comes in, there won't be any interest..

Again, crazy potential... it jumped 7%+ from yesterday! 7%+ in a day!
https://www.ig.com/en/commodities/ma...rbon-emissions
https://www.investing.com/commoditie...istorical-data

Made some sample trades at IG, CFD... Crazy movements.... Massive potential.. would have to see/test if I can model the market properly... and than the real trading could begin... Will check if I can link it as TE (TradeExplorer) to this thread so that you can see...

EDIT: Can't seem to link the TradeExplorer from IG (CFD) account... Will try/check some more... Checked, can't be linked they say... Have to find another broker that allows it, if I will see that it is worth to publish the trades.

Check the charts... crazy moves! Were playing today a little... massive potential.. the question is... how hard(er) is it to model it...
https://www.investing.com/commodities/carbon-emissions
https://www.ig.com/uk/commodities/ma...banner-dismiss

If I'll see that I can predict/model at least as "good" as eurusd/btc/gold... I will milk this to the tilt... Will publish TE (TradeExplorer)...
Just hope people won't be searching for drops of the milk once the cow is already exhausted or worse

(Let's) Be (among the) FIRST!

EDIT: BTW, I'm shorting atm! The "bad" side is that the market is open only... 07:00 - 17:00 (UK - London Local Time). I will pull at 10% on the trade.. Yeah, 10% profit... Tomorrow morning I hope... And then I will try to model the market as detailed as possible, trade it later... and after I make good money, will post it here for some to see what they have missed I can't wait to test the market that seems to be so under f... Market is much different at initial stages.. I remember bitcoin at the beginning when few people could move the market...

CO2 market pretty much stalled today.. The good thing is that it doesn't seem to react (too much if at all) to ECB drama...
Will try to close some trades tomorrow, still short btw... Potential returns are not bad, but so is the exposure...

Found another broker for this... https://www.plus500.com/Instruments/...rchTerm=carbon
so far found, tested...

1. IG... (Carbon Emissions - CO2)
2. Plus500... (EUA, ECF CDFs)

Help us list/test more!

Ok some small report since not many seem to be interested in this, at least not actively or enough to post here...
The market still seem impressive... Some do already offer, but in CFD or at least I haven't found SPOT market for it..
Would be surprise if exists already because the market was in a almost complete stall for the last 2days.. at least from my standpoint when I maybe wanted to make too much to quickly.. Wanted to make 10% per trade... Was almost there, like 5%+ seemed no problem with rather good exposure of course but still...
Might reduce the per trade profit expectation.. or try to micromodel it instead... smaller price changes instead of bigger swings...

The bad thing is that I can't seem to link trades to TradeExplorer so you would have to trust me with results Will try to post some signals, predictions, here.. if anyone is watching at all?

BTW... Still shorting atm! Will see next week how it goes... and will decide how/if to go further with this.. this time

BTW ppl, if you will check for this product (CDF), search by "EUA"... Some name it Carbon Trading, some Carbon Emission, some "EUA" (ECF)...
There seems to be not many providers for this... at least from the more known names... There are some companies that wants trader to contact them etc...
Not a straightforward platform etc... Haven't bothered with those yet...

Atm still shorting, but to be honest.. I would prefer for it to drop to like 5 (ideal entry I think) and just HOLD it Seems to be pain for trading atm, at least for bigger swings... might try little ones... I would prefer to just enter at the right price, with not much leverage and wait for it to raise... But have to do/test price prediction on this market... Still testing... Might get a clue by the end of next week...

Signal success... 35%+ return in 6 days.
Sorry linking to/as TradeExplorer (TE) seems to be not possible, have checked at IG... See previous posts about this.

Ok finally paid off.. The movements are painly slow but at least there were no spikes (yet)... So if it would show that I can model this market at least as good as some others.. I wouldn't mind getting profits slowly... So will see/test now how preceise can I bee and and what exposure to take, because much can happen in a week...

It took be 6 days to make this trade in some nice one.. But if would be stable, wouldn't mind since I would be trading with bigger deposits..

See how it went with this (sample trade)..
ENTERED TRADE ON: 12/09/19

See screenshots I just snapped.. You had all my positions live... Wanted to close at 10% profit but then I said.. what the hell, will wait till at least 50%..
It is good atm.. maybe will wait till 2500 (25 EUR) so about 50%...

Hope you liked it and see some potential in CARBON TRADING! I will now see if I can model it and how good but it seems this market is for BIGGER funds, I mean it depends how much onle could make... I wouldn't mind getting 35% per week even on rather smaller account, but too soon to tell if this can be sustainable.. Bear in mind that at the time when I entered great majority were LONG! But my applied prediction model... outputed/predicted SHORT... Ok, hope anyone reading this!
Until someone replies, I think this thread that became "journal".. will rest a little

Agreed there is a huge potential here, given the political climate surrounding climate issues. Enjoyed reading your write-up. Nice work!

Tnx man, was really hoping for it to reach 2500 today, almost https://www.ig.com/uk/commodities/ma...rbon-emissions

But also, was reading the news that there is increasing talk about personal CO2 coupons/imprint... For example, one that would go to the BUS (public transport), would be able to SELL his CO2 quota to someone that would go with a car If I understood the concept...

About this CO2 trading posted here.. I would much prefer to buy it like at 5EUR or something... currently hoping it would go down to 25EUR..

Cool thread - and interesting concept. I didn't realize it was traded via futures, and now IG CFDs. Maybe one day it'll be available on the charts here.

Would we be long-term bearish, however? As companies get more and more eco-friendly, carbon would be in less demand and the price would go down. All the developing nations would be buying it, but eventually it'd go to zero. Perhaps that's 50 years away. I bet the price of crude goes to pennies in the way long run.

Trade solar?

Woah Auricforecas!

What an abundant cache of resources about Carbon trading! Thank you!

You have far more knowledge and experience in the markets than I do, so I've been reluctant to barge in on this thread, but you've laid out all the information with incredible organization and this thread is a gem!

I didn't even know ANY brokers offered instruments to trade this! What a great opportunity!

With all of the climate awareness talk, and following the prices (which you've laid out!) and developments (industry/market growth, blockchain... etc) it doesn't seem like this market is going anywhere.

Yes it's hit a few snags, but feeling the pulse of the global markets, this is going to be a growing market that the finance guys can play, politicians can draw awareness to (and get lobby money) and the peoples/traders can trade!

Let's "BE FIRST AND SMART!" LOL!... and can't thank you enough for pulling this all together! I'll be following and try to contribute anyway I can!

Tnx man... Not sure about the longterm (a few years into the future) fade, because, among other things, just red the recent news about increasing efforts, at least in EU, to put climate changes, emissions... higher on the priority list... But, just looking at the historic chart atm.. without considering other (future/trend) factors much... I would much prefer to be in the buy at around 5 EUR Still waiting for the price to drop to 25 EUR... Have been waiting for sometime now... It almost did... hope it will, tomorrow? https://www.ig.com/uk/commodities/ma...rbon-emissions

Seems rather strong support at 25...

I would like for the price to be like 5 that was not so long effort.. and just put a good BUY positions and do nothing But atm I would be shorting because it might be overinflated... all things being unchanged... Many people multiplited their investments gratly in the past, just check the chart.. Massive opportunities.. even without leverage... Check https://sandbag.org.uk/carbon-price-viewer/
Crazy, right? But do not want to be a sucker buying now, specially without much further analysis of the trends.. because must estimate the "bubble" or speculation component and separate it from the industry/regulation trends and expectations/speculations

So to sum up, atm I would be SELL till 25,00 then do the further analysis... Because there are many factors... Just one, people do not trade it, no spot trading etc... If the traders/speculators would come to this market the same as they did with cryptos, can you imagine? But had to be careful atm..

Anyway, tnx for noticing the thread, replying... hope it will get a little more interesting... It seems the market moves slowly but those are rather heavy moves..
I mean in comparions.. EURUSD seems (seemed) to move.. but in reality... 1-2% perfect per day, so let's say about 200PIPS... would be OMG... Specially this days when we have/d weeks/months of stall... Where check this carbon... movies 1,75% like nothing https://www.ig.com/uk/commodities/ma...rbon-emissions

I mean best of both worlds would be... to find some believable (up) trend/analysis and people jumping it on the trades/speculation Imagine puting like 10k EUR at 5EUR.. and for it to jump to 50EUR which is not impossible... in rather short time... Now... if one would be (very) sure... could afford leverage.. now we are talking million(s) out of 10k... Nice food for thought

And yes, there is leverage, as mentioned..

I tried IG and plus500...

Please share some more... And if you could find SPOT market, if exists.. that would be great! Please share asap, if you do!

Well, finally!
It reached 25 (2500), f. finally

So 50% return/profit now...

Good precision also, atm
https://www.ig.com/uk/commodities/ma...rbon-emissions

Was consistent (and in trade) since about the last 2 weeks.. Took quite some time, but the move was now good..
I just do not like the exposure (to spikes) during... See attached screenshots... You can see the price difference vs. return...
So 2632->2500 (or 26,32EUR->25,00EUR.. so about -5%) means price account went from 9,038 EUR->13,394 (+50%)...
Just to show you the ballpark, reference... So here you have it.. Must say it exhausted me.. 2 weeks of trading/waiting at rather good exposure...
This kind of trade would be great for bigger money, specially going long at LOW and wait (do nothing).. For daily trading... much prefer other markets atm tbh...
Ok hope it helps... To open your mind a little, maybe... I do not plan to enter this CO2 market this year, because I need focus for other trades atm..
But will sure return to it... for deeper analysis...

Check timestampes of my predictions/consistency...

Had this trade still open... until today...

Seems to be a good TP number (2500) in retrospect... Some good money could be made trading around it, but wasn't in position... Kinda focused on other markets atm.. but will track it for now.. and I might re-enter some trades later, will leave 50% profits atm, untill I can re-focus to it some more... Still a good market, very positive trends... Will watch is relatively close, frequently.. just to get more feel, to compare/track it around certain news etc... And as always, would like to enter some good buy positions, should it crash for example... Anyway, market contracts expire in DEC so it will be interesting what happens by/that time...

Wow, it seems I might have pulled out too early Not in trade now and won't be for some time, but the price did went in the direction I traded (in the above trade)...
Almost regret it but hey, I prefer to trade the plan than to be sorry Still, check the current market... https://www.ig.com/uk/commodities/ma...rbon-emissions

I mean I can say this much that at like 5-15... I would be seriously considering buying, just not sure about risking with buying until much deeper research.
So far the price has been dropping since I started tracking it...

Man, seems like your having a blast trading these things. We're limited on what we can trade in the states anymore... Thanks Enron! Regardless, enjoying your journey and the future possibilities for us to get involved in similar markets.