[whereagles]

$this->bbcode_second_pass_quote('mark', 'O')il is traded, like many other commodities, at exchanges commonly called 'futures markets.' The public has always been able to participate in this form of trading.

[MrBill]

$this->bbcode_second_pass_quote('whereagles', '')$this->bbcode_second_pass_quote('mark', 'O')il is traded, like many other commodities, at exchanges commonly called 'futures markets.' The public has always been able to participate in this form of trading.

[whereagles]

$this->bbcode_second_pass_quote('MrBill', 'Y')ou would only have to put up $4725 as a non-member to trade one contract on the NYMEX.

[teemu]

$this->bbcode_second_pass_quote('coyote', 'T')hanks Doctor Doom, Carlhole et. al. Good explanations. Many people still don't realize that when you invest in futures you can lose a lot more than the amount you put in. Also the zero-sum aspect. My father had to explain to me, when I was young, that this is why so many previously wealthy investors did Peter Pans from 14th floors after the crash in 1929. Not only had they lost everything, they were also in debt for life.

[Doly]

So, let me see if I get it right: trading in margin is trading with borrowed money, right?

[teemu]

$this->bbcode_second_pass_quote('Doly', 'S')o, let me see if I get it right: trading in margin is trading with borrowed money, right?

[mmasters]

The great factor in the stock market crash of '29 was Margin.

The fact that someone could control 100 shares of stock by only owning 10 shares. People didn't see the problem when the market was going up and reaped the profits, however when stock started going down (even just a few points) they would get something called a "margin call" whereas they would have to put up more money to retain ownership of their stock. And most everyone that participated in the margin boom ended up losing their shirts when the stock market got downward momentum.

However you had people like the Rockefellers and the Morgans that were selling short the market at the same time. So while all the joe investors lost everything, many of the wealthiest of the time became that much wealtihier.

Since this time they have changed the margin reqirements to 50% to avert this type of thing from happening again.

However the problem never went away, people just got more creative. We now have options and other complex market instruments that can be used to rob investors. And the people that have the upper hand on these creative complex instruments are the rich of course.

Add to that that most of the world's drug money is laundered through the US to boost the markets as well as act as a slush fund for financial problems and emergencies and you have a system more rigged than ever.

But you know if anything the housing market resembles the pre-'29 market more than anything. People controlling properties with zero down no interest morgages. It's not even 10% it's ZERO percent. Combine that with the fact that the housing market is worth more than the US stock market and THAT is scary.

[Chaparral]

$this->bbcode_second_pass_quote('mmasters', '
')
But you know if anything the housing market resembles the pre-'29 market more than anything. People controlling properties with zero down no interest morgages. It's not even 10% it's ZERO percent. Combine that with the fact that the housing market is worth more than the US stock market and THAT is scary.

[coyote]

$this->bbcode_second_pass_quote('teemu', '')$this->bbcode_second_pass_quote('Doly', 'S')o, let me see if I get it right: trading in margin is trading with borrowed money, right?

[cube]

There are 2 rules that are constant in the "commodity futures" market:

1) If the price goes up and consumers must pay more for common goods then, the public blames traders for "profiteering".

2) If the price goes down and producers go out of business because they can no longer make a decent profit, the public blames traders for "profiteering".

Being a "futures" trader is like being a porno movie producer---you don't get any respect. The difference of course is that one is morally legitimate while the other requires you to make a profit off another person's expense. I'll let you figure out which is which.