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Oil price negative


spiderman

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Hello

 

Can anyone tell me if the oil price going negative means that the IG price I pay can fall bellow zero?

For eg if say I have a long position at £1 a point on crude and it was at 2000, I would expect to only lose a maximum of £2000 if no stop loss was set. Does going negative mean it can fall bellow zero?

This may be a silly question to most but I don't trade oil.

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3 hours ago, spiderman said:

Hello

 

Can anyone tell me if the oil price going negative means that the IG price I pay can fall bellow zero?

For eg if say I have a long position at £1 a point on crude and it was at 2000, I would expect to only lose a maximum of £2000 if no stop loss was set. Does going negative mean it can fall bellow zero?

This may be a silly question to most but I don't trade oil.

Hi, yes it is possible for the spot price to fall below zero due to the way the spot price is calculated using 2 futures prices. See a more detailed reply from IG in this thread linked below page 5 (about half way down);

 

 

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