Yes futures, options futures, and are product can have physical delivery. If you remember when oil went negative in the beginning of the year this is why. Traders can’t take physical delivery so the were literally paying others to take the contracts off there hands. Also if we use a non delivered tool SLV is tied to many factors one being spot
Also leverage isn’t the same as just inventing silver on paper it’s a useful tool. So this “run” on silver you talk about wouldn’t happen.
Dude right now most big funds and banks are long silver...If silver went up to 50 leverage would actual make them ALOT MORE money not less. I get that this can be confusing but at least don’t spout something that’s not actually true. Especially when you clearly don’t know what leverage is, or the fact that some products can be excercised to take physical delievery of. Way to many people don’t understand the market but think they do. I at least work as a quant trader in derivatives (including futures options) but don’t pretend to know everything, especially around FX and fixed income markets.
A good example of this is people watching GME volume to find shorts covering. What people don’t understand is that these shorts are most likely synthetic (constructed from options) so share volume won’t move when their closed.
Quick question do you think they sell those contract naked lol? Not they hedge to delta neutral. When you sell hares you hedge with calls. So the price change doesn’t matter much. Like I said YOU don’t know how the market works you look at it like you in fucking McDonald’s.
Yes futures, options futures, and are product can have physical delivery. If you remember when oil went negative in the beginning of the year this is why. Traders can’t take physical delivery so the were literally paying others to take the contracts off there hands. Also if we use a non delivered tool SLV is tied to many factors one being spot
Also leverage isn’t the same as just inventing silver on paper it’s a useful tool. So this “run” on silver you talk about wouldn’t happen.
Well from a payout it is the same. If they have over leveraged paper to 250x its still the same outcome.
Price of silver goes up and THEY CANT PAY OUT THEIR SILVER PAPER.
Dude right now most big funds and banks are long silver...If silver went up to 50 leverage would actual make them ALOT MORE money not less. I get that this can be confusing but at least don’t spout something that’s not actually true. Especially when you clearly don’t know what leverage is, or the fact that some products can be excercised to take physical delievery of. Way to many people don’t understand the market but think they do. I at least work as a quant trader in derivatives (including futures options) but don’t pretend to know everything, especially around FX and fixed income markets.
A good example of this is people watching GME volume to find shorts covering. What people don’t understand is that these shorts are most likely synthetic (constructed from options) so share volume won’t move when their closed.
ick. you do not understand the silver market like AT ALL.
They printed 3.5 billion ounces of paper silver on FRIDAY ALONE.
Banks have now sold over 300billion ounces of paper silver.
Thats not for them. Thats paper silver contracts they SOLD.
So if you know how the market works, if the price of silver goes up that means
the banks now own contracts worth 300$ billion dollars more for every ONE dollar silver goes up.
At 50$ silver the banks are sitting on their silver paper contracts worth more than all top 20 banks combined.
THERE IS ZERO CHANCE THEY CAN PAY.
Quick question do you think they sell those contract naked lol? Not they hedge to delta neutral. When you sell hares you hedge with calls. So the price change doesn’t matter much. Like I said YOU don’t know how the market works you look at it like you in fucking McDonald’s.