Can crude oil prices go in negative?
Yes!! It happened in 2020
Yes, crude oil prices can go negative, as was witnessed in April 2020. This unusual occurrence happened due to a combination of factors, including a significant drop in demand for oil due to the COVID-19 pandemic and a lack of storage capacity for excess oil. As a result, some futures contracts for crude oil briefly traded at negative prices, meaning that traders were paying others to take delivery of oil because they had no place to store it.
However, it’s important to note that such negative prices are relatively rare and typically associated with unique market conditions and futures contracts. In normal trading circumstances, crude oil prices are positive and fluctuate based on supply and demand dynamics.
Many lost millions due to averaging and never thinking that prices may go below zero. Brokers had to square off position when margin requirement did not meet by clients and People lost so much money.
Can Stock price go in negative?
Stock Prices
No, stock prices cannot go negative. Stock prices represent the market value of a company’s shares, and they are typically represented as positive values. However, the value of a stock can decline to very low levels, approaching zero, but it cannot go below zero. If a stock’s price becomes extremely low, it may face delisting from the stock exchange where it is traded.