The regulatory agencies really dropped the ball on this one. ALL futures contracts are far, far more in actual quantity than the underlying commodities. If all contracts were theoretically called at once, the markets would collapse instantly.
This is also true of ETFs. There are far more stocks on paper held by ETFs than are physically outstanding. Bubble, anyone?
The regulatory agencies really dropped the ball on this one. ALL futures contracts are far, far more in actual quantity than the underlying commodities. If all contracts were theoretically called at once, the markets would collapse instantly.
This is also true of ETFs. There are far more stocks on paper held by ETFs than are physically outstanding. Bubble, anyone?