I think they have the discretion to bust trades if they deviate a certain amount from the big S&P or the cash. It doesn't matter though, you would be in jail for attempting to manipulate the market anyway.
Funny.... isnt that what market makers and specialists do every day? Artificially move the market enough to hit stops and shake people out of their position, only to let the stock rip in the other direction moments later?? peace axeman
Ok...back to the question. Since this is a THOUGHT EXPERIMENT, I want to avoid the "technicalities" such as broken trades, illegal market manipulation, etc, etc... In a purely THEORETICAL market place, without any of these snags, where everyone is FREE to trade and do whatever they want, what would the result be??? I think that clarifies what im trying to get at. Make money, lose money, or about even??? peace axeman
Any bets on how long it would take to get to 535 at this rate of 100 emini contracts per second?? Seconds, minutes, hours, days??? Anyone? peace axeman
Clearly, you make money. To recap, the scenario: Unlimited capital. You short until the market is halved. You buy until infinity (no limit was given)... The value of your first buys rises, and you get rich (on paper)... of course, you can never liquidate, else you are going to lose a lot of that value. Ok, I know I'm cheating.
At that point, you start buying all of it back at the rate of 100 contracts per second (same rate). ->No stated limit, although it is obvious. Hence, I said I was cheating