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<p>[QUOTE=&quot;InfleXion, post: 1457782, member: 29012&quot;]I&#039;d advocate no margin on the buy or the sell side. Each contract is fully backed by real funds and fully represented by real goods. If market cornering is a worry, wouldn&#039;t position limits be sufficient? Leverage and fractional banking are what allow bubbles to happen. Without those things exuberance in either direction would be contained by the fact that your own assets or money are at risk. I see nothing wrong with speculating if you are on the hook for your decisions. </p><p><br /></p><p>I guess I don&#039;t see why the market would be ultra low volume if there was a 1:1 ratio of commodity per paper contract. Real time transactions on a large scale would still take place, as you pointed out in another post things don&#039;t have to move to make the transaction happen. I&#039;m just saying take the margin out of the equation and let market forces do the rest. In today&#039;s marketplace we have instant global communication. Removing leverage doesn&#039;t mean we&#039;d have to go back to the early days where price discovery information relied on archaic transportation methods. The reasons leverage was needed in the first place are no longer relevant. Its primary purpose now is counterintuitive to the reason it was incepted.[/QUOTE]</p><p><br /></p>

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