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I'm not claiming spot traders entirely ignore the futures market, but surely here you have the cart wagging the horse.

But from the little I know, that's exactly how it works: futures markets are supposed to be 'transparent' and in best knowledge of the entire market situation, thus the front-month futures price is supposed to reflect the 'real' price; while the spot market is supposed to be more secretive, but often using futures prices as benchmark.

I hope HiD turns up to give the insider view.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Fri Mar 21st, 2008 at 05:40:50 AM EST
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