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.
These contracts a written against actual silver you tard. Selling these is negative delta, owning silver, which they do, is positive delta. They ratio these to hedge out to zero delta and collect premium. This zero delta eliminates directional risk and so a change in price won’t bankrupt them. The will have to rehedge but the don’t loos the cost of all contracts sold. That fucking idiotic and if I held that position risk would come over and make me hedge, let alone bigger funds.
And I’m not say don’t buy precious metals. physical metals are good to own. I do. It’s a good hedge against the dollar and negative economic conditions.
What I am saying is stop misinforming people by spouting bullshit you don’t understand. Like I said you’re looking at this like you in a McDonald’s. There is much more than just buying and selling raw products in the market
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.
How did they issue 3.5 billion ounces of paper silver on friday alone? Did they back that with 3.5 billion ounces of physical silver?
If there only is 3billion ounces of silver then guess what? THE 3.5 billion in paper silver added on friday alone is MORE PHYSICAL SILVER THAN EXISTS.
Don't buy silver. Physical metals are for royal blood only.
You are a dirty poor peasant. Please keep your FIAT.
These contracts a written against actual silver you tard. Selling these is negative delta, owning silver, which they do, is positive delta. They ratio these to hedge out to zero delta and collect premium. This zero delta eliminates directional risk and so a change in price won’t bankrupt them. The will have to rehedge but the don’t loos the cost of all contracts sold. That fucking idiotic and if I held that position risk would come over and make me hedge, let alone bigger funds.
And I’m not say don’t buy precious metals. physical metals are good to own. I do. It’s a good hedge against the dollar and negative economic conditions.
What I am saying is stop misinforming people by spouting bullshit you don’t understand. Like I said you’re looking at this like you in a McDonald’s. There is much more than just buying and selling raw products in the market