Let me talk about my reasons for shorting WTI:
The following are just my personal reasons for shorting, and do not necessarily mean they are correct; it is just how I think, and I do not recommend copying my homework. If copying leads to losses, I am not responsible 😂
First: The United States and Iran have ceased fire, and the truce has been extended. Neither side wants to fight. Currently, the Strait of Hormuz not being open should be temporary and will not last too long.
Second: During wartime, WTI's highest price touched 120 dollars, so I set my liquidation price above 120 dollars. The last time it exceeded 120 dollars was in 2022.
Third: The historical highest price of WTI is 147 dollars, which indicates that there is a ceiling for further increases, while normally WTI is below 75 dollars. Currently, I added positions at 103 dollars. I personally believe that the downside potential is greater than the upside potential.
It’s best to short using a broker to avoid funding rate issues; of course, the funding rate is also not high now.
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