An Open Letter to Mr Osborne

[metalblue]

@metalblue - Can you recall (change) a trade and it still have an effect on the price of say silver for instance?

Short answer is no, I can't.

If I make a "fat finger" mistake I can contact exchange who have the power to cancel the trade if it is clearly a mistake and has impacted the market...it's never happened to me but I assume the exchange will suspend trading and bust any trades that have benefited or been negatively by the errornous trade....ie the market will return to its pre fuck up state

For off exchange trades what I agree with another counterparty doesn't alter the market price unless I publish it (this would have both the "back office" and regulators getting very interested)...the financial impact on the bank would probably have me in jail pretty quickly.

 

[Sun Jihai's ghost]

Cheers Metalblue for the useful insight. What you say makes perfect sense but I still think the movement in gold does not add up for exactly the reasons you point out, over time it must be a zero sum game otherwise everybody could make money in the markets by trading predictable patterns.

The price of gold since January 2001 has increased over 500% yet the movement during the most actively traded markets is down 70% during that time period. This pattern did seem to break in 2011, but even so that kind of price disparity between markets can't be normal over a 10 year timeframe.

 

[twinkletoes]

Almost half of experts who backed chancellor in opposition now say Treasury should borrow to spend on infrastructure projects.

Will Osborne give in to the pressure...