Oil stays at three year high after Trump's announcement
Iran deal exit blows up oil prices or did it?
Oil remained at its three year highs of around $70 a barrel, even after Trump announced his withdrawal from the Iran Deal.
These historical highs could benefit short positions if the trend gradually or abruptly reverses.
If Oil returns to this year’s low of $58.08 – under pressure from U.S. sanctions and ramp up of its domestic oil production– a short position on oil could return $13,005.00.
If the price of oil continues to climb, a short position would incur losses, however could be limited if it is opened with stop-loss, exposing the trade only to the maximum risk set by the trader.