General Discussion Topics, page-132478

Well a shorter relies on price going down, a long holder relies on it going up... Im surprised I had to explain this, perhaps go back to school mate. Also If you cant think that through then i guess you cant understand simple demand and supply economics let me explain it to you in a simple way. Well if your favourite lollies you buy from the tuck shop costs 5c, but then suddenly sugar becomes alot cheaper now they sell for 2c, you can buy alot of them, however once youve bought all those lollies, you find that the person who made those lollies cant get sugar anymore because no one wants to sell them sugar at a low price, then suddenly those lollies will increase in price because of scarcity. Once that happens you find that lollies will go back to their normal price of 5c but if the sugar farms couldnt keep up with demand because everyone wanted to buy when they see the price start going up then youd see more lolly manufacturers start bidding on getting the sugar causing sugar prices to inflate, this will mean your lollies might actually cost you 10c at least until all the sugar farms start using their other plots of land to grow sugar, because when price was low they figured theyd only use one plot of land to keep the business running.