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Thank you for sharing this! One outsider/laymen question: > When one of these brokers came into the pit and yelled out "what's the market on DEC '9 crude" trad
by throwaway613834 9y ago
Thank you for sharing this! One outsider/laymen question:
> When one of these brokers came into the pit and yelled out "what's the market on DEC '9 crude" traders guessed he was hedging for mexico and quoted a price a full dollar above where the market was at
> The brokers had no choice but to accept this higher price.
I don't understand this. They didn't say they want to buy or sell anything. Why were they obligated to do either?
- stevenj 9y agoI think they meant it's because traders knew that these brokers wanted to buy (to hedge), so the price was only going to go up further.