Can WTI go to sub $0 in the Spot Market?
Apr 22, 2020 at 11:33
Vistas 563
4 Replies
Miembro desde May 10, 2019
posts 14
Apr 22, 2020 at 11:33
I see that my broker doesn't let me put orders lower than Price $0.01. Does this mean that Spot WTI cannot go below this price as we've seen with Futures?
Miembro desde Aug 07, 2019
posts 3
Apr 22, 2020 at 12:22
most of the CFD brokers send emails these days, disabling OIL CFDs or keeping Close-only orders... with notice that all positions will be closed if Spot price goes below $2-3...
btw. not sure if any MT4/MT5 platform can go negative:-) I doubt they are built for that
btw. not sure if any MT4/MT5 platform can go negative:-) I doubt they are built for that
Miembro desde Feb 10, 2020
posts 11
Apr 22, 2020 at 14:00
I didn't think any asset could go negative. I was so shocked when oil turned negative. What does that even mean!!
Miembro desde May 10, 2019
posts 14
Apr 22, 2020 at 15:16
The real price of Oil which is the one found on the Spot market is the one to pay attention to. According to my broker, yes price can go negative but we cannot place orders there because of the platform. A whole lot of Bull.
forex_trader_584508
Miembro desde Nov 27, 2018
posts 4
Apr 22, 2020 at 15:56
The reason that we saw negative pricing in the futures market yesterday was because of a specific problem with settlement mechanism of the May 1st WTI contract (which requires—by law— delivery into the landlocked tank farms at Cushing, Oklahoma) rather than wider national or global build in storage (contrast with the seaborne Brent price for May).
Cushing Oklahoma is a literal choke point in the supply network of oil in the south-central U.S. All pipelines of finished product lead to Cushing in the inner U.S.
Cushing Oklahoma is a literal choke point in the supply network of oil in the south-central U.S. All pipelines of finished product lead to Cushing in the inner U.S.
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