‘Crashing crude may keep investors away from market’

Losses from trading of crude oil futures on the Multi Commodity Exchange (MCX) is likely to keep a large number of retail and high net-worth individual (HNIs) out of the markets for a long time, brokers told BusinessLine. This is even after MCX proposing that it would not allow any negative pricing and keep the base price for single lot of crude oil at ₹1.

“The loss to retail investors in the crude oil markets has been so huge that many would and should not look at the market during uncertainty. The memory of this pain will remain for a long time. In fact, the regulator and exchange themselves should discourage retail traders from crude oil trading or risk getting bad name,” said Sudip Bandyopadhyay, chairman and promoter, Inditrade Capital.