Crude oil price limits

@nithin we had witnessed the sharp decline in crude oil price today (1-8-2019). Around 8 % drop. International markets won’t have any day limits for trading in commodities.

What if he/she have a open buy position in today’s case, should suffer huge loss and also the international market timings will drag it still down…

Right, if one is having long position they have to suffer huge losses, respective broker will have risk management system to close the position when the losses are beyond control. Providing extra leverage will multiple it’s effect. This is same with any financial instrument. Hence it is said leverage is a double edged sword. If you are referring to circuit limits in India, then we have just temporary limits called as cooling period limits, for crude initial limit at 4%, then 6% and here it will stop for 15 minutes before limit is extended to 9% and so on.

Why do you say there should be system in place to protect the losses ? What if there will be some other cases where you actually win the train anyway. What do you want to really say about that ? I do understand that people do not like to fail, but accept other side of coin.

Read the post properly. Any market runs on buyers and sellers. At one point if it’s one side either buy or sell only… market will be closed for some time to get stabilize. I think you don’t even know this basic information. Actually I was on sell side of 4 lots. I booked a huge profit from it. But next trading day will get affected with such movements. No trader will be ready to trade in that situations.