I would like some more information about investing in carbon emissions futures as discussed in the interview between Raoul and Lawson Steele.
Raoul recently made some tweets about investing in carbon emissions futures. How can retail investors get in on this trade? I've found an ETF, KRBN, but that's really it. Is there something I'm missing?
Where am I?
In The Exchange you can ask and answer questions and share your experience with others!
Here is a link to the futures contract specs. https://www.theice.com/products/197/EUA-Futures63
The contract is sized at 1000x the quoted price so currently is a +40k euro notional size for one contract. As with all futures you only need post the margin to hold the contract so that will be specific to your broker. Another way to think about the size of the contract and what it's daily movements would mean in your account. Each 1 euro movement will cause the price of 1 contract to vary by 1000 euros. The current daily movement in ATR is around 1.40 euros so the daily impact as of now would be around 1400 euros.
Hey all - I'm quite interested in this trade and yesterday started looking at the KRBN ETF. What is odd is that the website currently says that they are pretty close to 100% in cash, and more specifically it says that their exposure to EU and California carbon futures is exactly ZERO 0%.
Am I mis-reading something?