h a l f b a k e r yPoint of hors d'oevre
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This is how oil market futures traders make their money. They prefer an unstable price that they can "bet" on .... a "stable" price for consumers is the last thing they want. |
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Thats not true, 7th of 8. Only the ignorant or willful gamblers use stock and futures markets like a casino. |
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The idea of futures trading is that the trader agrees to buy an item at price $X at a fixed future date, in the hope that on that date, the market price will be $Y where $Y > $X. The trader's "profit" (less margins and costs) is the difference between the two prices. |
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Traders therefore have a vested interest in increasing commodity prices. |
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Not all traders are bears, [8th]; at any given time, some of them have a vested interest in *decreasing* commodity prices. However, you're right that full-time professional traders (as opposed to people in other industries who are looking for a hedge) are against stability. |
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// some of them have a vested interest in *decreasing* commodity prices. // |
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Yes, some will want to sell short. That's how the market works. But neither Bears nor short sellers want stability. |
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So we agree. {checks nervously for implants, and other signs of assimilation} |
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You won't know until it's too late ... |
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So you have to pay to ensure you don't have to pay more? Not sure I like the sound of that. |
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On a side note though, I'm guessing you [iamnafets] are American by your use of the word 'gas'.. come to the UK mate, our petroleum prices will give you a heart attack. I kid you not. |
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//neither Bears nor short sellers want stability// Bears are short sellers. Although, if new thinking is to be believed we have bull-bears and bear-bulls, Freakonomics my left labia. <rushes off to add female tag to profile> |
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