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NYMEX halts gasoline trading with futures off 8%, in order to expand price limits. Meanwhile,...

NYMEX halts gasoline trading with futures off 8%, in order to expand price limits. Meanwhile, crude has slipped the $100/barrel barrier, -4.1% to $99.57. Brent crude also down 3%. Natgas -1.7%.
Comments (7)
  • nfantis
    , contributor
    Comments (84) | Send Message
     
    Go figure... gasoline dips the day after I fill my tank.
    11 May 2011, 12:27 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3342) | Send Message
     
    Gasbuddy sent me an e-mail saying gas prices will go up because of the flooding (refineries idle). So my investments go down while gas stays up. Can't win.
    11 May 2011, 12:58 PM Reply Like
  • WMARKW
    , contributor
    Comments (10471) | Send Message
     
    Go figure....they didn't halt silver trading on the way down? Why the inconsistency?
    11 May 2011, 01:25 PM Reply Like
  • okiepoor
    , contributor
    Comments (11) | Send Message
     
    believe it or not gas prices went up today....here in OK
    11 May 2011, 07:25 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3342) | Send Message
     
    Flooding.
    12 May 2011, 08:53 AM Reply Like
  • buybuybear
    , contributor
    Comments (389) | Send Message
     
    Does anyone know why trading was halted? I sincerely can't understand why that was needed? Because it was trading -8%? What about people who were being short... their earnings potentials were being hurt...

     

    Does it also stop trading at +8%?
    11 May 2011, 08:00 PM Reply Like
  • nfantis
    , contributor
    Comments (84) | Send Message
     
    Many commodities have a limit down feature that limits how much they can drop in a single session. There's also a limit up, but I'm not sure if its the same range or not. From investopedia:

     

    "The maximum amount by which the price of a commodity futures contract may decline in one trading day. Some markets close trading of contracts when the limit down is reached; others allow trading to resume if the price moves away from the day's limit. If there is a major event affecting the market's sentiment toward a particular commodity, it may take several trading days before the contract price fully reflects this change. On each trading day, the trading limit will be reached before the market's equilibrium contract price is met."
    11 May 2011, 11:17 PM Reply Like
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