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<p>[QUOTE="desertgem, post: 1514770, member: 15199"]I am sure a well meaning simplistic idea of how markets operate. The silver market is similar to the the stock market in that orders are bid/ask operations, just as the bullion brokers are. The price one sees on bullion boards are often just the ask price ( what you would pay to get it), but they usually don't show the interests ( how many contracts are offered at that price). It may be 10 or may be 500, but it isn't infinite. You put in a billion dollar order, you will get the number of contracts available ( open interest) at that price, and that is it, unless more decide to open up to take your bid. If one is foolish enough to put in a 1B$ order <b>at market</b> ( at anyones offered price !!!) , they may get their first level at their opening bid, but then the market will pop up the next level and they will pay more, and so on, Computers are fast to catch this and the bidder will be paying outrageous prices for the contracts within a few minutes. That is why when large buyers want a large amount, they arrange private deals , where a set price is indicated and agreed upon. No way his scenario would work~ just a scare tactic.</p><p><br /></p><p>I am sure if the CME read the article mentioned they blew coffee through their noses <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 1514770, member: 15199"]I am sure a well meaning simplistic idea of how markets operate. The silver market is similar to the the stock market in that orders are bid/ask operations, just as the bullion brokers are. The price one sees on bullion boards are often just the ask price ( what you would pay to get it), but they usually don't show the interests ( how many contracts are offered at that price). It may be 10 or may be 500, but it isn't infinite. You put in a billion dollar order, you will get the number of contracts available ( open interest) at that price, and that is it, unless more decide to open up to take your bid. If one is foolish enough to put in a 1B$ order [B]at market[/B] ( at anyones offered price !!!) , they may get their first level at their opening bid, but then the market will pop up the next level and they will pay more, and so on, Computers are fast to catch this and the bidder will be paying outrageous prices for the contracts within a few minutes. That is why when large buyers want a large amount, they arrange private deals , where a set price is indicated and agreed upon. No way his scenario would work~ just a scare tactic. I am sure if the CME read the article mentioned they blew coffee through their noses :) Jim[/QUOTE]
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