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Sask | Something like 5% of contracts stand for delivery. Contracts are entered in as delivery or cash settled, I don't know the stats on what percent of deliverable are cash settled.
Regardless, comex/CME claim to have the right to force cash settlement. A guy would have to learn more about the nickel trading event a few years ago to see all the ways the exchange can make things work in their favor. Even if you have a deliverable contract, it does not assure you of your commodity.
And at that point, what will someone accept as settlement in cash when they stand for delivery. Better yet, what will you pay for a contract that is not delivered on.
It's the biggest game of bluff. How many people will call for delivery at any given time and what will the house do if they don't have the resources to deliver on the game they are hosting. Cash settlement is certainly an option. As is changing margin, suspending trading and even setting the price of a contract. All been done before.
House makes the rules. The real question is if the players don't like the rules, will they go play at a different establishment. That is when you find out much different the game can be. If no one else hosts the game then nothing changes. Seems to me there are other places to obtain silver if the establishment upsets some players. | |
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Silver
