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You could have a delivery tax... if you don't take delivery, you pay the tax of the person who takes delivery .. and if you are a hedger you get to right off the delivery taxes you pay as part of your cost of doing business. It reigns in speculators immediately, but doesn't disturb the functioning of any Market.

The delivery tax could be set by some kind of basis level.
 
Quote from misterno:

It has been mentioned in the media hundreds of times that the paper demand is 11 times the physical demand

what this means is that once you ban speculation like options futures fwds and short sale and only allow Spot TRADING in oil, you will see oil prices get down to cost which is probably around $20/brl and even lower.

We are overpaying for oil in huge percentages and funding the terorists. But the US Govt is happy.
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It's always the case with futures that the open interest on the futures is many times the physical demand. Since the great majority of futures trades close before maturity and cancel each other out, this doesn't mean much.
 
Quote from olias:

"“Does it make sense that you can buy considerable stocks of commodities without running any risk, ...” Sarkozy said. "

wtf is he talking about? Sarkozy seems to consistently clueless
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Sometimes I am not sure he understands there is a risk of directional loss in trading..LOL. In his mind, it is almost like getting interests. He made it clear in Davos last year that it wasn't normal( for traders ) to make that much money without working. he really has no clue.
Once you are a trader, you just sell short stocks and buy commmodities and wait for the money to come.
 
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