What risk management lessons to learn from negative oil price event?

Not x

aring/knowing it went negative is like saying contract size doesnt matter
Lol

i dont think he asked about the why which you are right on that part

 

I was on the June contract when the May contract went negative. CTS broker

 

I’d learn about stop loss.

 

U must be joking

 

Stop loss didn't work in this context. IF it did, there is no need to start this thread. Stop loss is the most basic risk management technique.

 

From what I understood,
It was assumed that 0 was the floor,
Hence no stop loss was used to limit risk.

Not sure why it wouldn’t work.
Because the broker rejects negative orders ?

Change broker then.

 

Also it’s said :
Don’t trade what you don’t understand.

It’s sound risk management principle.

 

Broker software got confused and refused to accept orders with -ve price. This happened even with reputable brokers like Interactive Brokers.

 

And tda

 

Why don't they get confused and exit the trade in your favour ? (sarcasm)

wrbtrader