When speculators were buying oil for 147 dollars a barrel, did they have to pay for it and take possession? Did they sell it immediately or did they take a severe loss? Or are they just sitting on it?Does anyone know how this works out?
The speculators who got in at $147 in July took a loss. Everyone before that, Jan - June made money... a lot of money.
Commodities speculators never take delivery. They just buy and sell the right to buy and sell at an agreed upon dollar amount.
A farmer sells his corn before it's planted so he can plan on his income. The guy who buys it hopes to sell it for a profit at a time in the future, before delivery.
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