On April 20, the price of Light Sweet Crude Oil (WTI) futures for May delivery saw a historic plunge to the level of 0 USD and even below it due to the current global economic events. In the course of trading on the exchanges, the price tumbled to as low as -$40.32 per barrel. It was the steepest fall in oil quotes on record.
InstaSpot offers its clients the #CL trade. This is a futures contract without an expiry date based on the front-month WTI futures. The sudden crash in oil prices has caught our clients completely off guard.
To protect clients' deals from staggering losses, InstaSpot decided to stop CL trade and close all clients' positions since most of them were the long deals.
As a gesture of goodwill, the company also closed clients' short deals at 0.07, the last available quote on the trading platforms. All long positions will be closed at a higher quote 2.00. It means that we closed short deals on oil at 1.93 USD lower than buy positions. We hope that these measures will help those who have incurred big losses due to the collapse of oil futures quotes.
#CL trade will be resumed on April 22 with the June contract.
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