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<p>[QUOTE=&quot;desertgem, post: 1447539, member: 15199&quot;]<p style="text-align: left"><span style="color: #000000"></span></p> <p style="text-align: left"><span style="color: #000000">The answer is &quot;Yes&quot;, but with effects. Once they short sell the actual commodity, the value of the short ( minus margins, charges, etc.) is&nbsp; into their account and the exchange now has control of the commodity. If the commodity goes up in price, most likely someone will buy the contract and go long, or the original owner will have to buy it back at the new price ( plus margin, charges, etc). They can&#039;t just say oops ~do over, and get their commodity back. They have to pay in each direction. Up until the last month, the owner of a future can be on margin, but if they want delivery, they have to then pony up the actual full price or they finish the transaction on a cash basis. Few, except for industrial or jewelry companies go for delivery. 95% or so start as a margined cash account and are finished that way so no silver metal changes hands. The exchange is a public company and has to make the best profit it can on these interactions. They are like a large Vegas Sports Betting entity, and can&#039;t afford a big loss due to imbalances. That is why when Silver makes a big dash up or DOWN, the margins change to protect the exchange&#039;s vigor.&nbsp; </span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">With all options and futures, the contracts can be rolled over to following month or periods, but it isn&#039;t free. If you buy a silver contract and silver goes down, you lose &quot;money&quot;. When you roll it over before the end of that contract period, you have to sell the old one and buy the new one ( ROLL OVER), so the old one is worth less and the new one costs more, so if you keep doing it without a reversal , you will lose money hand over fist. </span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">If your contract makes money, you are in the green, but you must choose to take it and wait, or think it will keep going and roll it over. It will still cost money as the new contract extends further out.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Most commodity players lose, the exchange wins ( since they can change the margin) and little silver is delivered compared to the number of contracts..</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p><p>[/QUOTE]</p><p><br /></p>

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