2 ms·
"traders were required to pay to offload their futures contracts in order to not take delivery of the oil" That doesn't seem accurate, since the expiring futur
by perl4ever 7y ago
"traders were required to pay to offload their futures contracts in order to not take delivery of the oil"
That doesn't seem accurate, since the expiring futures rebounded to a positive value the next (and final) day, right?
It seems more like people were panicking and thought they had to unload at any price, but it was simply an error. Although I'm not knowledgeable about it.
- toast0 7y agoIf you were a speculative trader, and absolutely didn't want to have any oil delivered to you, it makes sense to sell at close the day before the futures become binding. You could wait until the last day, but you'd have a big problem if the market was closed that day becomes of unexpected circumstances.