Trade negative prices on Oil

Since the beginning of the year, oil has experienced unprecedented volatility, which on futures contracts escalated to negative prices. Specifically, the May contract reached almost - 40 dollars, and with fast-filling storage capacities, the risk of negative prices still persists. This is a problem for CFD traders, as platforms like Metatrader and cTrader are not built for negative prices. Purple Trading has prepared special instruments CL+100 and BRENT+100, which is the spot price of oil increased by 100 dollars, where you can speculate on the return of oil to negative prices.

We keep on trading even if market is unstable again

Negative oil prices have been a long time just a theory, and with the approaching expiration of the May contract, this theory has become a reality. No one was prepared for this event, not even the trading platforms. Neither Metatrader or cTrader can process negative prices on the underlying assets, and traders would find themselves in a situation where their trades on the CL or BRENT would be automatically closed at a price of $ 0.1 per barrel. At the same time, due to a very unstable situation and the possible return of negative prices, we had to set trading to close-only.

 

Chart: 1H chart of intruement CL.i (Zdroj: Metatrader 4 Purple Trading)