hahahaha hilarious! OPEC is the oil mafia, full stop. Traders are like glorified real estate agents, always pushing the price up artificially going long or going short. Creating value in things that dont exist (derivative traders) while being ass kissed by brokers everyday who make you beleive they are your best friends.(NOT) About back to mcDonalds? I dont know any trader that ever worked in McDonalds, however, considering the pay of some traders in europe (Sweden and Holland high tax areas), being a manager in McDonalds seems like a better alternative!
That guy 777 has to be the most stupid guy on ET. He Knows shit about the industry pal. He said that the Floor need to be closedf down But he ignores that the WTI is the cheaper crude grade thanks to the speculators. The same with Metals. There are 86 metals out there, only 13 of them trade in the centralized exchange market and those 13 are the cheapers metals in the market. Close down the exchange and the US will cry blood, the crude oil will top 200 in matter of months and the volatility will increase well over 400% like the potato and onion markets back in the days. The Petrodollar is whats makes the US the world power player. I will love to see what will happen to the transportation industry if they have to hedge one on one in the OTC.
Interesting , Rubibond... It would be great to make the public aware of these facts... Nobody knows the cheapest commodities are the one listed on regulated exchanges.
More pearls of wisdom from someone leasing my seat. Barron's, May 03, 2011: Silver prices are continuing to fall this morning after the CME Group (CME) said that initial margin requirements for silver contracts are going up for a third time in a just over a week. Futures slid nearly 2% in Asia and July contracts were last trading down $2.689 at $43.395 on the Comex. In pre-markets, the iShares Silver Trust (SLV) was down 0.8% at $42.50 a share and the Global X Silver Miners ETF (SIL) was slipping by 0.5% to $26.31 a share. The CMEâs initial margin requirements will increase to $16,200 per futures contract, up from $14,513. Maintenance margins were increased to $12,000 from $10,750. The changes are effective after the close of business today.
as someone who is trying to understand this... can you guys comment on the following: http://www.chicagonow.com/blogs/chi...-politicians-and-the-oil-speculator-myth.html basically he is saying that the speculation blame game is crap b/c the spot market drives the futures, not the other way around. I am not sure I understand that... if traders are going long futures, wouldn't there be some kind of arb going on between spot and futures? Thanks in advance...
This is true. It's true for most physical markets. The cash market is multiples larger then the futures market. If you own the underlying physical, you set the price. It's that simple. The reason being is that anyone short futures has to actually deliver the physical. So he has basis risk essentially, i.e the difference between futures and cash. Markets like stocks can be manipulated much easier because there is no delivery process. It's all about the float with stocks. The physical market for oil is predominately in Switzerland and is controlled by the Marc Rich's of the world. Their activity dwarfs the futures markets. There is an arb there but you have to hold the physical to capture it. This is why JP Morgan and Goldman got into the storage game so they could trade the arb. But the arb does not bring prices into alignment in the open market but rather at delivery, it's called a basis trade. All futures markets have a basis trade in some form. It's a huge game in fixed income as well.
you're talking nonsense, as usual. you wouldn't know a rigged game if it bankrupted you. oops, that already happened, didn't it.
You know stock777, there are some people on this site that are trying to learn something. You don't have to kill every thread do you? If you would read more and post a little less, you might learn something as well instead of screaming all day about HFT's and how hard it is to trade.