Trading Curbs In The Oil Pits
- Thread starter Roman Candle
- Start date
It IS an obligation to deliver or take delivery...and if you hold into delivery then you must be prepared to do one of the two.
And who in the hell said I want to socialize my loss?????? Last time I checked, if I made a losing trade I payed for it...ME. Thats how I want it to be...ME be responsible for ME and MY actions...and the govt. and Bammers (Idiot Inc) needs to STAY THE HELL OUTTA MY BUSINESS!!!
Are you using futures to hedge the costs of your grain business (which is what it was intended to do)?
Or, are you also trading futures to supplement your income and get you through the rough years?
FTR, I'm not calling you out on this personally even if you are trading for income. More power to you if you can trade it well.
But, just because it's possible for people with no skin in the game to be able to trade futures doesn't mean it should be allowed.
The knock-on impacts to the rest of society alone, as we saw last year with crude is more than enough reason to re-examine the whole structure of commodities futures.
I do both...I use the futures to hedge the crops and cattle my farm produces...but in all reality, my "day job" if you will isn't farming...its trading...so yes, I am a speculator mostly. Have two seperate accounts...one hedge, one spec.
By the way...where would the regulation stop? If something then is deemed to "harm" or inconvenience one person (whether it does or not)would you force it to stop? Just something to think about....give them an inch.....
I don't like to be rude, but pal,You know nothing about the futures markets. I Trade physical Grains as a exporter and I trade energy related spreads. Look how volatile are the onions and garlic in the cash market, is over 300% bigger than most grains.
the Indian Government banned futures trade in wheat, rice, tur and urad 2 years ago, The ban had not led to decrease in prices of these commodities, in fact, The prices in those commodities increased by about 26 per cent. Similarly, in case of tur, the price of tur continued to rise despite ban. In case of urad, the declining trend continued even after the ban, which was also indicated by the futures.
The same thing happens here in the states with onions and potatoes, they banned the Onions from futures trading in 1958, after that the prices in onion makes the swings in oil and corn look tame.
Can You imagine what will happen to the transportation industry, materials industry, export-import industry etc, if the Ban the especulators from the market?, How American Airline will hedge they'r Jet Fuel and against who?.
Our government having shot itself in the foot repeatedly and noticing it somehow missed the big toe takes careful aim and squeezes the trigger. Oil prices are being affected by money flooding (FED, Central Banks) into commodities seeking to leverage against the expected inflation that will be caused by.
Much of this speculative hedging is not in futures contracts or derivatives, but is actual physical oil stored in tankers anchored off the coast of Malaysia. Physical oil located outside of the United States and Europe is immune to a possibile seizure by tyrranical governments on the grounds of "national emergency."
What makes this inlation hedge even better is that the major banks who have been flooded with newly created money by the Bank of England, the European Central bank and by the Federal Reserve System will gladly make 80% to 90% margin commodily loans at very low interest rates to their large institutional customers.
Do you understand how regulated are the refinery industry in this country and much you pay in taxes per gallons?.. Do you want to know why nobody in the private sector wants to invest in new tech or new refinery in this industry?.
The real villan here are those bureaucrats in washington and those people like GS and their washington authorized ponzi scheme with those ETF funds.
Wow... really good post Rubibond.
And by the way, Jprad, forget what you saw/heard about commodity prices in the last year, have you got something to say about the current prices of oil, corn, wheat? It is just about the same price as before the evil speculators "came in" and manipulated the market like never before.
And by the way, Jprad, forget what you saw/heard about commodity prices in the last year, have you got something to say about the current prices of oil, corn, wheat? It is just about the same price as before the evil speculators "came in" and manipulated the market like never before.
Let's see, as of March 2009, the GLD ETF held 1,104 tonnes of physical gold.
How much crude have the crude and energy ETFs taken delivery of?
How much wheat, corn, etc. have the agriculture ETFs taken delivery of?
You can't have a functional market when you allow trading of paper that isn't tied to the underlying alongside paper that is tied to the underlying.
Who knew the Arabs were correct when they told the world that we do not control the price of oil. Turns out it was the American speculators.
Just increase the margin amounts to 50% similar to stocks that will allow the price of crude oil to trade closer to reality.
By the government just threatening to increase the limitâs some speculatorâs have fled already.
Just increase the margin amounts to 50% similar to stocks that will allow the price of crude oil to trade closer to reality.
By the government just threatening to increase the limitâs some speculatorâs have fled already.