Everyone is shorting crude oil. If oil prices are definitely going to fall, why does it seem that everyone loses money?
You guessed the outcome correctly, but you ignore the timing—whether it will drop next week or next month is unknown. Money has a time value, and the high financing costs are also reasons many people can’t afford to hold on and end up cutting their losses and running. So the conclusion is: don’t short crude oil carelessly!
You guessed the outcome correctly, but you ignore the timing—whether it will drop next week or next month is unknown. Money has a time value, and the high financing costs are also reasons many people can’t afford to hold on and end up cutting their losses and running. So the conclusion is: don’t short crude oil carelessly!