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
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.
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.
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.
What specifically is this paper you talking about a future? Of which you can take delivery of physical silver, an option? If so on what because those options on futures also can be exercised for futures which can be delivered. Or are you talking about SLV which is an ETF, which is the same as SPY, Russel 2k and other indices. if your smooth brain even knows what that is. ETFs are securitized to their underlying so although you can directly trade it for physical silver it is not jUsT a PieCE of paper.
But I get it your retarded self probably think pegged exchange rates are beneficial to our economy and that the market is just a farce. Might as well be a commie if that’s the case.
You could grab a put on it. Got one today and I’m up 10%. Might use it to start going long volatility on SLV.
That’s not how paper works. And it definitely would not crash silver market let alone the economy. At least understand what theses contracts, futures, and option actually do before making us look stupid.
I never did you’re right. But on Inauguration Day there were a huge number of people who came to the light and saw Q was either the worlds biggest leap or biggest Psyop. It’s pretty ironic people who believe know about them are involved in one lol
I didn’t mean the democrats legitimately won the election. All your trust the plan bullshit let people and I quote “get comfy and wait” instead of acting. YOU qtards lost us the election after the fraud was exposed. You bitches like to think you part of something special to make you feel better about you lives. I hate to break it to you there is nothing special about this except lunacy.
You idiots are watching fucking planes lmao
I didn’t mean the democrats legitimately won the election. All your trust the plan bullshit let people and I quote “get comfy and wait” instead of acting. You bitches like to think you part of something special to make you feel better about you lives. I hate to break it to you there is nothing special about this except lunacy.
God you people really are delusional. And your delusions led many into complacency which lost us the election. Truthfully you did more to harm trump than the democrats ever could.
No, Jesus and god may or may not be real. I don’t know you don’t know stop pretending you do. Some of Christianities values are good some are back. No one needs to be saved except the weak.