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22fdunst

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Posts posted by 22fdunst

  1. 3 minutes ago, Crush1884 said:

    Technically the spot price (DFB) could become negative but you should set your own downside risk. If oil @ $0 is your maximum acceptable risk then set your stop at that.

    The reality is a negative spot price is totally illogical, the spot price hit $7 today and quickly rallied out of that ridiculous valuation. 

    Potential maximum price movements shouldn't really be considered, understand why you are placing your trade, know what rules will be hit for you to take profits and what rules will be hit (stop set) for you to take losses.

    Thanks Crush1884. It’s a long term hold for me... Happy to keep open until normality returns. I’m trying to ensure my position can’t be closed hence the question. I can cover a reduction in value to $0 but need to understand whether I should plan to cover a negative position beyond $0. 

  2. Evening. Quick question on US Crude DFB. Can the price get lower than $0 as happened with the futures prices yesterday? I suspect not but looking to buy and trying to calculate the downside risk. Relatively new to this so sorry if some of the language is incorrect...

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