HeatingOil.com Presents: An interview with a NYMEX trader

Whats the difference between futures and options? Between a put and a call? The price of heating oil is never far from the minds of heating oil consumers and dealers, but to understand heating oil prices requires understanding the complexities of commodity markets. HeatingOil.com strives to make sense of that often confusing world, and this week we paid a visit to the New York Mercantile Exchange (NYMEX), the commodity exchange where heating oil contracts are traded, to learn more about how the price of heating oil is determined.

HeatingOil.com watched the controlled chaos of open outcry trading that distinguishes the NYMEX from other exchanges. We were on hand when the Energy Information Administration (EIA) released its weekly report on oil inventories, and saw the action in the trading pit gain momentum as traders—and their clients—reacted to the news.

Amid the bustle of the NYMEX we spoke with Raymond Carbone, a veteran commodities trader and the president of Paramount Options. Carbone, who has been interviewed by BusinessWeek and CBS News, among many others, gave HeatingOil.com a glimpse into the mind of a trader and the workings of the commodity market. Watch our interview below or on the HeatingOil.com YouTube page to see Carbone explain the difference between options contracts and futures contracts, evaluate the importance of oil inventory numbers, demonstrate some of the hand signals used by traders at the NYMEX, and much more.

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[DanW900]

It is located on 1 N End Ave, by the former World Trade Center. Dude, it's called Google. LOL

[donzaliko]

@DanW900 dude is this new building? can you tell me update about nymex

where are they now?

[gridbroker]

www

[gridbroker]

visit gridbrokers

[gridbroker]

for free investor information

[DanW900]

@flyem00

this is one of the many morons that make us consumers suffer.

[flyem00]

Another market manipulated by Goldman Sachs the hedge funds and the Exchanges. These bozos like the one interviewed make their living getiing fed by the Pit brokers with the commercial paper.