VnutZ Domain
Copyright © 1996 - 2017 [Matthew Vea] - All Rights Reserved

2008-01-12
Featured Article

Trader Vanity Behind $100 Oil While $200 Oil Looms

[index] [2,919 page views]

Obviously, there is no need to "make" a market for oil given the global demand. With the price of oil looming in the upper $90s, however, one trader decided he wanted to make history. Looking to be the first person to ever own $100 oil, this trader intentionally timed and bought 1000 oil barrels to drive the price above $100. After breaking the $100 per barrel mark, he immediately resold his oil at $99.40 (a $600 loss). With the $100 record out of the way, futures trading has already bid on $200 per barrel in 2008.

In After The Trade Is Made, a "Market Maker" is defined as a firm that risks their capital to trade chosen securities against clients and other dealers. In layman’s terms, someone who persists in trading a product "makes" the market for that product through perceived demand. While not acting as a firm, the aforementioned trader’s actions (and subsequent trickle effects) clearly demonstrate the market making principle; the purchasing whims of a single entity can have global impact on a product’s price – even when its not "real" demand.


More VnutZ.com Content You Might Be Interested In Reading:

Back in the day, you could get a huge performance boost from manually tweaking the RAM refresh rate.

Or try your hand at fate - use the Pattern Analysis of the MegaMillions Lottery or the Pattern Analysis of the PowerBall Lottery page to pick "smarter" numbers. Remember, you don't have to win the jackpot to win money from the lottery!

coinbase