reply to post by sp00n1
Here is what I do not comprehend, and I'm not really sure how this point is even refutable.
The position limit in Silver Futures = 6000 contracts.
JPM must report and the CME knows at all times what their position level is.
According to the CME it would be impossible to have more than 6,000 contracts because this is a breach of Rule 560.
6000 contracts * 5,000 troy oz. = 30,000,000 troy oz.
So I can tell you how many ounces they have or are under contract for delivery for at most at any one time. It is 30,000,000 troy oz.
Before you ask, yes, firms do get penalized for going over the limit. If I recall correctly, UBS recently was penalized for exceeding position
Here is the link
Why do I read on some quasi-blog informational websites that Silver has no position limits? But then it starts to make sense because then they in
turn try to sell you or give you a link to a vendor that will sell it to you at a markup. I have seen this before. It is called sensationalism to
drive retail players into the marketplace.
Where am I going wrong? I just have a really hard time understanding all of this. I have never traded a silver contract in my life but have been
involved with the CME before and never have I been led to think anything is suspect.
If I am wrong please feel free to correct me. I am hoping someone can clear this up with factual information.