northern edge of north central Missouri | senodak - 2/23/2024 16:16
Do you have any clue as to what buying 325,000 contracts would do to the market?!?!?! You can’t just push the button and do that all at once. They’ve made their money, hit their objectives, now all they have to do is cash in on it (buying back their shorts).
Here’s a hint for you, study the daily volume a bit and try to wrap your head around the magnitude of 325,000 contracts?
I agree if 325,000 shorts are liquidated at once not all 325,000 contracts would trade at the same price. The price would obviously go higher assuming there aren’t enough sellers at that price and price would move higher to find a new seller.
But I don’t think fund managers are avoiding exiting their short position because of the fear of drastically higher prices.
Unless regulations limit their trade volume or something? |
Farmers are the fund buying and selling
