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There is only so much you can buy in a futures market before it starts pulling the spot market up.
by 21 8y ago
There is only so much you can buy in a futures market before it starts pulling the spot market up.
- moomin 8y agoYou might be interested to learn this is a point of some contention. There have been real markets with utterly wild and out of control futures markets where the spot seems to have happily trundled along with the fundamentals.
- 21 8y agoLike? If true it means that either the futures market are tiny or that there is a barrier to efficient arbitrage.
- moomin 8y agoChinese commodity markets have been known to be hugely volatile with huge volumes. The actual producers react by pulling out of the futures market. Which I guess might qualify as a trading strategy.