@Tfmonkey you were talking about how people who hedge with options aren't making that much money, well at least in paper trading so far, i don't think ive ever lost money on an option/future combo.....as a matter of fact, i believe producers MUST buy the options as insurance in case of an FTD, or not being able to fulfill the obligation.
@Tfmonkey furthermore, every single time Ive shorted a commodity future in backwardation, I "Won" the trade, and "profited" handsomely.
You can lose unlimmitted money short selling but only a finite amount of money long selling
The only way to get away with short selling is to create a shell 3rd party structure that does not harm you by putting you into debt if it goes into debt but makes you profit if it profits, especially if the shell can get government bail outs
Short selling should be against the law
@shortstories @Tfmonkey if you short sell 100 shares of something, and then buy a put option (The right to sell at a certain price by a certain time.) you are pretty safe from losing infinite money, at least until the contract expires.
@shortstories I sell stuff short all of the fucking time with no consequences, as long as proper consideration is given to risk management, it can be done without bankrupting you, especially for trading (as opposed to investing) Much more comfortable shorting something intraday, than risk holding overnight....
@Tfmonkey counterparty risk.