Jump to content
Sign in to follow this  

Oil price negative

Recommended Posts

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.

Share this post


Link to post
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);

 

 

Share this post


Link to post

More importantly, where can I sign up to get paid to receive some barrels of oil?

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×