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14/01/20
07:28
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Originally posted by Fudley61:
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the lesson learnt. when a farmer signs a futures contract to deliver 100 tonnes of wheat, on 15th of January 2020 for example, he must deliver 100 tonnes. Not 80. Not 90. Not 98. 100 tonnes. If he hasnt got it, he must find it. is anyone seriously telling me 10% of the 790,000 open contracts in the Comex derivative market will be fullfilled? does anyone seriously believe a JPMorgan broker “buys” 25,000 contracts to sell 100 oz of gold, with full intention of meeting these obligations? has anyone got fairies living at the bottom of their market?
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When you mortgage your house at 5% for the next 10 years, does the bank know you're going to pay? That is a futures contract - believe it or not.