Possible for Forex futures price to go negative like oil futures?

Discussion in 'Forex' started by helpme_please, May 29, 2020.

  1. This sounds like a silly question but oil futures price going negative sounded silly last year.

    I would like to ask the forex experts here whether the same thing can happen to forex futures? What if some day some rogue central bank suddenly decides to do something monumental about the country's currency?
     
  2. MrMuppet

    MrMuppet

    math teachers please calm down...he just had a moment
     
    NotKenGriffin and rb7 like this.
  3. Zalak

    Zalak

    Interesting enough questions, I really would like to know the opinion of others.
     
  4. MrMuppet

    MrMuppet

    ARE YOU GUYS FUCKING KIDDING ME???

    FX trades in ratios....how would ratios go negative when numerator and denominator are both positive?

    Sometimes, guys, you should ask yourself if another hobby wasn't better for you
     
    Last edited: May 29, 2020
  5. virtusa

    virtusa

    I am sure that many crypto believers are sure this can happen when crypto's take over the financial markets. :D

    I am wondering now if the saying "there are no stupid questions, only stupid answers" is always correct... :confused:
     
  6. danielc1

    danielc1

    I think that OP is thinking about of that there is something out there in the forex market, that would give the same result as in oil going negative. And then the anwser is yes. Not going negative, but almost the same effect. Think about strong devalution, Sudden Death of a country (Political, War, Major disastar beyond recovery), Changing standards of valuetion in any kind of form over a weekend, and so on. The ratio would not be negative, but with one numeration in the fraction of a very low number over night or day, would have the same effect.
     
    virtusa likes this.
  7. virtusa

    virtusa

    Indeed he will be wiped out when his account will go negative while forex will still be in positive numbers.

    A lot of traders who were long oil, probably got wiped out before oil went negative.
     
  8. heispark

    heispark

    Sounds nonsense to me.......
     
  9. Chyu

    Chyu

    I think that everything can be expected from such organizations. At least now we see that any forecast can be thrown out in such situations.
     
  10. danielc1

    danielc1

    You don't have to look far to have an example of a 'sudden death'. Jan 2015 swiss franc, dropt 40% against the euro, intraday, due to a sudden death (Political change of carrying the swiss franc, from support to letting it go.)
    Many fx brokers closed shop and even some hedge funds, that where holding position in the wrong direction, due to the leverage forex can give.
     
    #10     May 29, 2020
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