A Trader's First Book on Commodities Quotes

“Despite arguments against speculation and its place in the commodity markets that shape our economy—and, therefore, our lives—without it, producers and users of commodities would have a difficult time facilitating transactions. Thanks to speculators, there is always a buyer for every seller and a seller for every buyer. Without them and the liquidity they provide, hedgers would likely be forced to endure much larger bid/ask spreads and, in theory, price volatility. Consumers would also suffer in the absence of speculators simply because producers would be forced to pass on their increased costs to allow for favorable profit margins.”
― Carley Garner, A Trader's First Book on Commodities: Everything you need to know about futures and options trading before placing a trade

“Just as you pay a commission to the retail broker who took your order or provides you trading access via an electronic platform, the market maker must be paid in the form of the bid/ask spread. Think about it: If as a retail trader you are always paying the ask and selling the bid, you are a net loser even if the price of the futures contract remains unchanged.”
― Carley Garner, A Trader's First Book on Commodities: Everything you need to know about futures and options trading before placing a trade

“The term rolling, or rolling over, is commonly used to describe the practice of offsetting a trade in a contract that is facing expiration and entering a similar position in a contract with a distant expiration date. Rolling over is simply offsetting one position and getting into another.”
― Carley Garner, A Trader's First Book on Commodities: Everything you need to know about futures and options trading before placing a trade

“The common thinking is that you can’t possibly sell something before you own it, and even if you could, some interest likely would be charged for borrowing the asset that you intend to sell. Although that might be true in stock trading, that logic doesn’t apply to the futures markets.”
― Carley Garner, A Trader's First Book on Commodities: Everything you need to know about futures and options trading before placing a trade

“Arbitrage is a "risk-free" profit, but for most of us, it might as well be a mirage. Markets are quick to eliminate such opportunities.”
― Carley Garner, A Trader's First Book on Commodities: Everything you need to know about futures and options trading before placing a trade

“If you can take advantage of a situation in some way, it’s your duty as an American to do it." —C. Montgomery Burns (from The Simpsons)”
― Carley Garner, A Trader's First Book on Commodities: Everything you need to know about futures and options trading before placing a trade