@squarepants
shorts control the price because futures are primarily a financial instrument not a delivery mechanism and because of the size of implied volumes means the risk is too high for most investment buyers to go long
think about it like shares
share price may rise or fall on a given day due to people selling or buying - say end of year tax selling
it has little to do with underlying 'value' of the company
futures is a more extreme version of that
except with futures every month end is like EOFY
dont get me wrong - producers arent going to agree to forward sell at eggregiously low prices
but most of the incentives in futures are structurally pro shorting for anyone big enough to be a market maker
- Forums
- Commodities
- SILVER
- The biggest short squeeze in the world?
The biggest short squeeze in the world?, page-2770
-
-
- There are more pages in this discussion • 2,408 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SILVER (COMEX) to my watchlist
The Watchlist
JBY
JAMES BAY MINERALS LIMITED
Andrew Dornan, Executive Director
Andrew Dornan
Executive Director
SPONSORED BY The Market Online