Of course ES contract can exist only if there are both, buyer and a seller. That is not the point, however. As a seller of ES, I am not limited by a finite inventory. I can offer to sell as many contracts as I want (subject to margin requirements). The supply and demand theory originally was proposed in 1691 and formalized in 1817. It referred to trade of physical goods with finite inventory and demand driven by need for consumption of those goods rather than speculation.
________________________________ From: skunktrader <[email protected]> To: JBookTrader <[email protected]> Sent: Mon, November 29, 2010 12:25:12 PM Subject: Re: [JBookTrader] Re: Indicators Astor wrote: > In capital markets, the supply > often can be manufactured instantly, in any quantity at will and the demand can > be deferred without any adverse consequence: e.g. there is no physical > limitation on the number of ES contracts that can be written by the sellers and > the buyers can easily forego the purchase if they believe the price is too >high, > no matter what the book imbalance is. > Not really. By definition, an ES contract can only exist if there is both a buyer and a seller. -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en. -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en.
