top | item 30763823

(no title)

renw0rp | 4 years ago

So why do we even allow entities which are not interested in actually delivering/receiving physical goods to trade futures? Genuine question

discuss

order

robbiep|4 years ago

Market makers have an important function in providing liquidity even in the absence of underlying asset.

However this can create unusual and aberrant situations that certainly warrant raising these sort of questions in order to determine appropriate regulations and rules

krageon|4 years ago

This is an expensive way to say "they give you money maybe, even for nothing". That last part is the problem - if that is their core role, they should not exist. Even if they make some folks a lot (more) money.