should commodity trading be restricted to people directly involved in the business?
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No. It’d be like restricting gambling to professional gamblers. We need their easy money, it’s gonna pay for my next car!
4 Responses to “should commodity trading be restricted to people directly involved in the business?”
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February 28th, 2010 at 6:00 pm
No, it is part of the free trade market. If you step in and put stipulations on it then you might as well regulate the stock market too.
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February 28th, 2010 at 6:34 pm
No – most end users do not want the hassle of trading or buying in the open market, they find it easier using a broker.
The market could not sustain periods of inactivity, when the users are not in need of the commodity.
Most end users do not want to warehouse the product until they’re ready to process/use the commodity.
The end user does not need the cost of insurance to warehouse the commodities until they are need it
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industry experience
February 28th, 2010 at 6:41 pm
No.
That’s the whole purpose of creating the market in the first places. People in the trade always seem to need to buy or sell at the same time. Without speculators to take the other side of the trades, the volatility would be huge. That’s the way it used to work before organized exchanges. More recent markets that have ailed to attract speculators have shut down.
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February 28th, 2010 at 6:54 pm
No. It’d be like restricting gambling to professional gamblers. We need their easy money, it’s gonna pay for my next car!
References :