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<p>[QUOTE=&quot;desertgem, post: 1470087, member: 15199&quot;]Consider if JP Morgan sold 10,000 contract oz of gold a couple of days ago, they have to deliver if any one bought the contracts, and lets say the buying party wanted delivery, so they paid the full price. its destiny would transfer to the buyer on a certain date. But then today, gold is down to about 1566 from the 1630 avg a couple of days ago. So JP Morgan can either buy or replace with calls or delivery contracts and basically books about $70 x 10,000 or $700,000 for their foresight. The loser is whoever took the other side , buying the contracts, maybe because someone told them that gold was going much higher. I do not know if JPM took such action or not as they may think that gold may go much lower.</p><p><br /></p><p>If the market for gold had gone the other way, JPM would lose. If stayed the same, probably they would both close off and only lose exchange fees. There is a set calendar for delivery of futures, and even at the worse, the one delivering has 30 days notice to put up or buy the contract back or deliver the gold.[/QUOTE]</p><p><br /></p>

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