A high-tech SME scam. Trader = victim? - page 4
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Imagine you are in charge of the CME.
All traders make their trades with you. You have all the data on all positions.
You open two accounts. On one you only buy, on the other only sell. If you trade only with yourself, you are just moving money from pocket to pocket. You have a lot of money and you put hundreds of limiters in a cup on both sides. You wait.
Small traders come in and open single positions. You sell and buy with them making small deals on a couple of contracts. You get a few people who open sell positions. They wait... They cannot move the price. Even if one hundred people simultaneously short 300 contracts, the price will not move because you have bet 350 contracts on Bidet.
Then you decide to move the price. You make a deal with your other half for 350 contracts and the price moves a point against several traders' positions. They are already down. You're on the plus side. You don't just move your money from pocket to pocket, you move their money into your pocket because they made the deal with you...
Well, why not open a market for doubts and trade them? :)
How do you imagine it? Interesting idea of a market of doubts!
It makes for a good detective, I completely agree with what you're saying.
How do you imagine it? Interesting idea of a doubt market!
You may be very knowledgeable about futures, but the question is not about them, but about the fact that traders lose their money not to other traders, but to an unknown program owned by a corporation called CME, which trades against them. They have no chance.
The CME has nothing to do with it at all. It is a big computer that charges a commission for its use. Moreover, the use of insider information by exchange employees for personal purposes is a criminal offence in the US and can get 10 years.
Profit/loss comes from what one owns. In this case there are owners of futures, a commodity which is traded. In this way futures trading is fundamentally different from Forex, which is a betting market. The main difference is that the futures are not even traded on paper, but in the computer accounts, without any commodity.
To answer your question you have to answer the question: Whose balance sheet are the futures on? If these are settlement futures, and even in volumes far in excess of the physical commodity, then different financial institutions: hedge funds, banks, maybe insurance companies and pension funds.
Our economists (e.g. Khazin, Delyagin) believe that the main modern economic problem is these very futures, as financial instruments with no relation to the real economy at all, but regulating it at the will of those who own hedge-funds and so on.
So all you are observing is a haircut. The real profit is in price regulation. The price of oil was rising, and then it started falling many times, and then it rose again, and then fell. If you know these target levels, it is not about knocking down stops.
Well, I was hoping I was just being paranoid)))) Doesn't anyone whitewash such a reputable corporation in my eyes?
The CME has nothing to do with it at all. It is a big computer that charges a commission for its use. Moreover, the use of insider information by exchange employees for personal purposes is a criminal offence in the US and can get 10 years.
Profit/loss comes from what one owns. In this case there are owners of futures, a commodity which is traded. In this way futures trading is fundamentally different from Forex, which is a betting market. The main difference is that the futures are not even traded on paper, but in the computer accounts, without any commodity.
To answer your question you have to answer the question: Whose balance sheet are the futures on? If these are settlement futures, and even in volumes far in excess of the physical commodity, then different financial institutions: hedge funds, banks, maybe insurance companies and pension funds.
Our economists (e.g. Khazin, Delyagin) believe that the main modern economic problem is these very futures, as financial instruments with no relation to the real economy at all, but regulating it at the will of those who own hedge-funds and so on.
So all you are observing is a haircut. The real profit is in price regulation. The price of oil was rising, and then it started falling many times, and then it rose again, and then fell. If you know these target levels, it is not about knocking down stops.
I wonder if you can imprison a computer program if it uses all the data it receives.)))
And who would check it - the government, which receives constant revenue from corporations? The honest officials?
To punish someone small for insider trading - of course, but not to punish the feeding hand of officials and themselves for wanting a nice and rich life... And here is such a trough...
Do we have to go on a diet and deprive ourselves of additional income? Well, I don't believe it. Yet we are living in the real world, not in a fairy tale. The law works for those who make it.
He who stands at the centre of the infrastructure earns the most.
Price regulation is market manipulation. Who profits from it? - The one who manipulates. The state. The bureaucrats. Corporations.
For example: You come to a person and say: "I have reasonable doubts about what you sacredly believe. For a fee, I am willing to destroy your faith. But it will only benefit you...". )))