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Non-Cattle Specific Topics
Every Thing Else Board
futures up -steers down
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<blockquote data-quote="options" data-source="post: 680024" data-attributes="member: 12793"><p>Herefordsire</p><p></p><p> If you own the underlying commodity used to cover the contract you have only paid margin calls or been paid margin calls. No profit will be realized above the original contract price. You may win on 1, but you lose on the other. </p><p>The only way they will realize profit as you describe will be thru speculating without owning the underlying commodity. </p><p>Advising these people to play the futures market is suicide for them. They might get lucky they might not. They just as well sell the cattle and go to the casino with the cash. We all know how stupid that is. CME has some great tools to insure profit for these farmers and ranchers but the futures market isn't one of them.</p><p></p><p>Herefordsire </p><p></p><p>You do realize that considering the question asked by denoginnizer, about cattle feeder futures going up, and the feeder cattle going down, and if that situation continues, that your advice about selling a feeder cattle futures contract and buying feeder cattle, you have now gotten your shorts cleaned twice?</p></blockquote><p></p>
[QUOTE="options, post: 680024, member: 12793"] Herefordsire If you own the underlying commodity used to cover the contract you have only paid margin calls or been paid margin calls. No profit will be realized above the original contract price. You may win on 1, but you lose on the other. The only way they will realize profit as you describe will be thru speculating without owning the underlying commodity. Advising these people to play the futures market is suicide for them. They might get lucky they might not. They just as well sell the cattle and go to the casino with the cash. We all know how stupid that is. CME has some great tools to insure profit for these farmers and ranchers but the futures market isn't one of them. Herefordsire You do realize that considering the question asked by denoginnizer, about cattle feeder futures going up, and the feeder cattle going down, and if that situation continues, that your advice about selling a feeder cattle futures contract and buying feeder cattle, you have now gotten your shorts cleaned twice? [/QUOTE]
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