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Former Options Trader !!!
Join Date: Feb 2003
Location: Bucks County PA
Posts: 6,758
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Quote:
Originally Posted by MRM
The problem is that speculators are what keep the markets efficient. They take the risk of great swings in the price, hoping to make a profit. The people who need to buy or sell at a known price or secure a long term supply need these people to keep the markets moving. Sometimes that drives prices too high or too low for a short time, creating an anomoly in the market, but the underlying law of supply and demand always brings things back in line with the fundamentals.
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MRM is exactly right. I would only add if the govt imposes regulations to eliminate the speculater then you dont have anything that resembles a free market and more players would leave which in turn would do 1 of two things. 1) send the futures trading in crude to an exchange outside the US 2) disrupt the global market in crude which would not be a good thing.
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