who decides the prices the futures ?

Discussion in 'Trading' started by ADX_trader, Sep 18, 2002.

  1. Who decides the prices of the futures? Will the prices of the futures be pushed up if someone buy a lot of contracts? Assume I had money to buy 10000 SP contracts and I continuously buy it. Will the futures move up even if the spot market is not rising? The question is, if I had lots of money to play, can I control the market for a short period of time?
  2. Quah


    There is a little man that sits behind a wall at the CME - he decides. I don't think too many people have seen him before - think "Wizard of Oz".
  3. Htrader

    Htrader Guest

    If you are buying enough futures, you will move the spot market as well, since index arbs will hedge the two inline, not to mention all the daytraders that would be buying stocks on the futures strength.
  4. alain


    its the arbitrange that solves this problem.
    A market could be controlled if you would be the only one to have unlimited capital.
  5. Right -- the government does it all the time to induce late day rallys.

  6. cheeks


    Let me take a guess. You don't think Lee Harvey Oswald acted alone. :D
  7. Let me guess! You think tupac is really dead, along with Elvis? You also think that we didn't come from Mars 2.6 billion years ago and transformed Earth? You realize that planet is covered with rust for a reason, right?

    Of course Kennedy was killed by the mafia, with help from the KGB.
  8. Yes but the arbitrange(sic) is like who wags the dog, the tail?
  9. OK, guys stop messing around. He might be serious Here's the answer:

    It's the same people who determines the prices of stocks....

    His name is Don Bright.

    That is why a lot of people ask him questions and kiss his ass on the board.
  10. huh???
    #10     Sep 19, 2002