who decides the prices the futures ?

A

ADX_trader

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?
 
Originally posted by ADX_trader
Who decides the prices of the futures?
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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".
 
Originally posted by ADX_trader
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?
More...

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.
 
Originally posted by ADX_trader
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?
More...

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

PPT.
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Let me take a guess. You don't think Lee Harvey Oswald acted alone. :D
 
Let me take a guess. You don't think Lee Harvey Oswald acted alone.
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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.
 
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.
 
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