Oil Trader bankrupts SemGroup

?.....they lost money on futures hedges AND they weren't able to collect on their "expected profitable" cash market positions because the other party reneged on those trades combined with detrimental basis movement? Don't you just hate it when people do that!

 

these hedge funds do trades by phone and voice and signatures.

 

Exactly the same thing happens to many farmers (especially ones that listen to the wankers at the NAB) over here. Hedging commodities isnt as simple or as safe as many believe there are many factors that can screw the undercapitalised hedger

 

I think the same thing killed Amaranth trading nat.

 

The commodity markets are there to make the exchanges rich, not to help any farmer

 

there isn't enough volume in the cash real market to even have an exchange.

 

Will robots create the algo's?

 

Nope, he blew up making bets on the summer/winter spread. Basically was betting on huge (and I do mean huge) winter over summer spreads and they narrowed drastically.

 

I only know enough about nat. to stay away from it..

it's worse than silver

 

Amaranth had 90,000 contracts of natural gas...in spreads
500,000 bp of oil is only 500 contracts a day!
the wheat trader at mf global did 25,000 contracts of wheat at mf global and lost 140 million..evan dooley