Originally Posted by
andy171773
I don't know specifics but i know that an oil futures trader does not have to put up anywhere NEAR the amount of money, compared to the monetary value of oil he's trading.
So if they're playing with 100,000 dollars of oil, they may only be putting up 10,000 of their own money, to control 100K of oil.
I read this on a CNN article somewhere, and this is the reason for the EASE of oil getting so high so quickly.
I know the oil futures (speculators) have been able to buy on margin, and run the price up to these rediculous levels. But I also thought most of this was being done in the UK where US regulation won't do a darn thing. But I've been trying to research what Anderson is talking about with this "loophole" and why I should petition the congress to pass what ever legislation that Delta wants passed.