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When we had that oil glut years ago and traders couldn’t unload their futures, they found out the hard way that futures meant they were legally obligated to tak
by throwup238 6mo ago
When we had that oil glut years ago and traders couldn’t unload their futures, they found out the hard way that futures meant they were legally obligated to take delivery of real oil and store it, causing a mad scramble to figure out what to do with it when storage started running out.
- embedding-shape 6mo ago> they found out the hard way that futures meant they were legally obligated to take delivery of real oil and store it Sometimes, even average(ly stupid) people end up discovering this too: r/wallstreetbets - 7d ago - Anyone know how I can cancel this? I dont want it - https://old.reddit.com/r/wallstreetbets/comments/1siq4m2/anyone_know_how_i_can_cancel_this_i_dont_want_it/ https://old.reddit.com/r/wallstreetbets/comments/1siq4m2/any...
- throwup238 6mo agoI think it’s fake. Brokers don’t allow retail investors to keep those contracts anymore unless they come with a warrant (i.e. precious metals stored in some COMEX vault). They will auto-liquidate positions well before first notice day unless you’ve already got documentation for a slot at Cushing.