5 ms·
You can't set an upper limit for what can be lost unless you force other traders to buy what a short seller is covering. Non-deliverable futures markets with n
by mortehu 8y ago
You can't set an upper limit for what can be lost unless you force other traders to buy what a short seller is covering. Non-deliverable futures markets with no shorts are not possible, and it isn't practical to make every futures contract deliverable.
- Dylan16807 8y agoThe price of electricity is only going to go so high, though. Without leverage, it's vastly harder to lose all your money on a short, because the asset has to double in price. In this case, the spread peaked at about 38:56. Without leverage he'd be down 10 or 20 percent.