Examples of Contracts

• WTI contract
• https://www.cmegroup.com/markets/energy/crude-oil/light-sweet-crude.con
tractSpecs.html
WTI Crash
• WTI for May 2020 delivery
• Expire at Monday April 20th
• If you are long, after expiry, you have to take 1000 barrel for each contract
• But to be able to take those barrels, you need a place to store them
• But there is no place.
• Thus, you have to find someone to take your contract. That is, you have to place a sell order to
reverse your position.
• But for your sell order to be matched, there must be a buy order
• But of buyer must take 100 barrels and store them
• There is no space to store…
• The result, there is no buy orders and soo many sell orders. Those who had long positions placed sell
orders at lower price. No one want.. They make it negative. No one accept. They made it deep
negative.