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Mark:
You are right and the example you give is a good one. The worst case I can
remember was in the copper market. I had a very large long position on for the
porfolio I was managing at the time. The floor ran the price up about 4 cents
right on the close, right to my profit target and I was selling the close as
fast as I could. This was on the last day of a quarterly period, and so the
profits I booked would determine my quartly fee from my clients. I was not able
to get all of my position off at the close, and when I saw the price the floor
committee set as the 'settlement' price, I went ballistic. It was no where near
the prices that were trading on the close.
Best,
Tim Morge
Mark Brown wrote:
>
> I know this, look at an intraday chart and where it closes. Then in a quote
> screen bring up the settlement field and watch the settlement be different
> than the close you have on your chart screen. This is very alarming for BIG
> money manages because this is what the books and margins are determined upon
> at the close of the business day. A big money manager can be made to send
> millions of margin money from a settlement that is just two ticks away from
> what the real closing price is. I have personally seen settlements that
> were outside the closing range and no time and sales prints there to back
> them up. Details will kill you in this business if you ignore them and
> there are many to observe. Like I said before loss of money is a GREAT
> teacher, so I have had the privilege of receiving an Einstein equivalent
> education. MB
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