Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
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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