$100 trillion dollars in derivatives

M22au,

I just have a nasty amount of puts and shorts on equities. I don't actually touch Gold, but I do follow it. I let my equities side of my portfolio ride the longer term, and I daytrade futures.
 
Can anyone say panic disorder? It still amazes me that people go to such lengths to create such a one sided view of the derivatives markets. Either they truly don't understand derivatives or they choose to selectively present facts to bolster such falsities. Thankfully some understand how derivatives markets work. Does anyone really believe that banks such as JPM would allow such outright directional positions? If you do, please pm me. I have some great beach front property just outside of Phoenix that I'd like to sell - to the right buyer of course.:D
 
if the world financial market can stand 9/11, LTCM, 10/87, and all the idiots running around in the middle east acting like god loves them, i think the world financial market can tolerate just about anything...

just my .02
 
Amen, brother. My $0.02 worth is that derivatives spread the risks around - let the rich hedge fund clients absorb the fallout from directional bets. Banks and dealers make markets and are generally not allowed to run directional books.
 
Quote from bungrider:

if the world financial market can stand 9/11, LTCM, 10/87, and all the idiots running around in the middle east acting like god loves them, i think the world financial market can tolerate just about anything...

just my .02
More...

I agree.

The stock market withstood one Bush recession already. Dow Jones is holding up well in the second Bush recession. Derivatives threat may prove to be another minor obstacle.


:p

:cool:

:D
 
The stock market withstood one Bush recession already. Dow Jones is holding up well in the second Bush recession. Derivatives threat may prove to be another minor obstacle.


:p

:cool:

:D [/B][/QUOTE]

Would you please explain to us laymen how the recession is Bush's fault.
 
Quote from easyrider:

The stock market withstood one Bush recession already. Dow Jones is holding up well in the second Bush recession. Derivatives threat may prove to be another minor obstacle.


:p

:cool:

:D

Would you please explain to us laymen how the recession is Bush's fault.
More...

I am not saying that it is Bush's fault. The recessions just occur when the last name of the Presidents are Bush.
 
Bondtrader,
I really do think that big banks have suppresed the price of Gold. There was also a lawsuit by a New Orleans firm that was delivered to JPM a couple of weeks ago, accusing the big bank of illegally suppressing the price of gold futures. So it is almost a fact that big banks have been suppressing the price of gold futures.

And do I think that big banks would take on such a one sided view?

Well, yes, but I don't think that they would do it intentionally.

JPM was one-sided in its decision to suppress gold futures. That sounds like a reasonable postion for such a huge bank to tackle because they can handle it.

BUT, THAT IS THE DANGER, my friends!!! When a big bank has the balls to do something like that and the prices move against them and they keep averaging into the position. Then the postion blows up on them as other banks are now covering and covering and covering. Then there is silence and the gold market looks like it will come off. Then JPM shorts some more. Then the friggin' mother load of buyers comes in when some crazy act of God strikes. Then JPM goes bust.

If anybody thinks that this is an impossibility, they need serious help IMHO. Just remember, when things seems impossible, they are really only highly improbable. Anything is possible!!!
 
I have traded only index futures - and those only recently. Do other exchanges/markets have similar limit up or down circuit breaker features? Seems like that would be a first line of defense in a general panic BWTFDIK.

Geo.:cool:
 
You must log in or register to reply here.
Back
Top