3 ms·
I've heard many stories about traders letting their futures expire and having to take delivery of whatever commodity it was. I'm pretty sure they're all urban m
by jsingleton 11y ago
I've heard many stories about traders letting their futures expire and having to take delivery of whatever commodity it was. I'm pretty sure they're all urban myths though. They probably just had to unload them quickly at a big loss.
I would love to be proved wrong if anyone has a story with evidence. Preferably with pictures of shipping containers arriving at a city office!
- baking 11y agoDelivery was always at an established market point. Also, brokers would never let retail customers take delivery and would close out the trade because they would be at risk too.
- columbo 11y agohttp://www.minyanville.com/businessmarkets/articles/futures-contracts-expiration-soybeans-eggs-oil/9/21/2009/id/24547 http://www.minyanville.com/businessmarkets/articles/futures-... "Ideally, the broker will make sure everything goes according to plan," the Prince of Peanut Oil told me. "But I once knew a guy who was trading for himself. He bought six egg contracts, with each contract worth 18,000 cartons of one dozen eggs. That's 1,296,000 total. The guy somehow made the mistake of taking delivery."