"because their market positions are so large, cannot hold their
entire positions in commodity contracts. Instead, they hold a
majority of their position on over-the-counter swaps. Changes in
these positions behave differently than one would expect.
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Title: USO UNG Anyone still interested
Posted by jamtoday on 18th of Jun 2009 at 12:10 pm
Anyone still interested in the USO UNG discussion?
Could $30/bbl Oil Happen Before New Year’s Eve?
http://europe.theoildrum.com/node/5496
Helps explain weird behaviour ...
"because their market positions are so large, cannot hold their entire positions in commodity contracts. Instead, they hold a majority of their position on over-the-counter swaps. Changes in these positions behave differently than one would expect.