Offering our customers CFD trading on the front-month WTI (Light Sweet Crude Oil) futures contract that has a ticker symbol #CL, we constantly monitor the market situation. In recent weeks, prices have been extremely volatile. Thus, futures contracts for May delivery turned negative for the first time in history.
Our company has already introduced any possible measures to save client's accounts from disproportionate and unexpected losses caused by the plunge of the traded asset to almost zero, or even into negative territory. We are ready to take action again.
In case of a crash in prices of the current oil futures contract (#CL), we are going to take the following steps:
- If the price drops below $3, "close only" mode will be applied. Our company also reserves the right to increase a Stop Out level for open #CL positions to 100%.
- If the price plunges below $1, all trading positions will be closed.
- If the price rebounds and consolidates above $3 for more than 12 consecutive hours, the possibility to open trades will be restored again.
Similar requirements can be applied to #QM oil futures contracts.
InstaForex warns you that it is extremely important to carefully choose trading and investment instruments amid the ongoing global economic crisis.