home Finance, Headline News, Oil field services, Production Oil torn between fundamentals and hedge fund positions: Kemp

Oil torn between fundamentals and hedge fund positions: Kemp

Successful trading rule No.1: do not enter any significant position until you have worked out an eventual exit strategy.

Rule No.1 is especially important if the position is large relative to the overall market or a large number of traders are all trying to put on the same position at the same time because the position could strain available liquidity.

The question of an exit strategy has become pressing in the oil market because of the enormous short positions accumulated by investors in the expectation oil prices are about to fall further.

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