The price of oil

Posted by Chris on November 7th, 2012 filed in Trading

This is a true story, as far as I know. Backed up by the New York Times. Jan 2, 2008, trading floor of a prop trading shop. Oil had been steadily heading higher for weeks if not months and we were all waiting with bated breath to see when it would hit the arbitrary “wow” moment of $100 per barrel. Something happens over at the desk of the guy who is trading oil, and people are all laughing and shaking their heads as they walk away. Oil had finally hit $100 and gone back down immediately.

Apparently someone wanted to be the first person ever to trade oil at $100 so he bid it up, bought it and immediately sold it. Didn’t even cost him that much. He just wanted to have been the first and that was it.

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