Trading FX is ethical, trading commodities isn't

[the hare]

commodities traders spend all their free time robbing the homeless and poisoning African wells?

I wouldnt have thought robbing the homeless was particularly profitable. If anyone wants a well poisoning I'll happily oblige if the price is right.

 

[BSD]

If anyone wants a well poisoning I'll happily oblige if the price is right.

What's like the curent going rate, roughly ?

Never know when one might need what, after all !

 

[Pazienza]

I wouldnt have thought robbing the homeless was particularly profitable. If anyone wants a well poisoning I'll happily oblige if the price is right.

Well, that's the point, they do it for fun, because commodity traders are bad.

Now, I don't mind you poisoning wells, that's fine. But agreeing a price independently with another party? Don't you realise how that could cause price spikes in the well-poisoning markets? You evil b4stard, the going rate for well-poisoning should be set by the UN or something.

 

[BSD]

Hows about price discovery by market...

Well-poisoning futures.

Brilliant !

 

[HowardCohodas]

Yeah, record levels of snow and rain doesn't sound like climate CHANGE at all.

Change, yes. Trend, no. The consequences of believing models that are internally inconsistent but are nonetheless worth using as the basis of making major economic decisions should cause everyone pause. Science, like any other profession, has its share of scoundrels.

 

[Pazienza]

The harmful price rises in basic *stuff* has led to agitation in Tunisia and Algiers, riots have recently been quelled in Boliva, as the govt took away price subsidies for petrol, riots are a constant threat in other parts of Africa. Do FX speculators cause that degree of harm (given that liquidity = price discovery) or are *we* deluding ourselves that our game is nuetral?

Tunisia is the result of over two decades of rampant corruption and misrule. Mohamed Bouazizi also had something to do with it.

And why do you say "we" when talking about people who trade, Walter? You mean "they" don't you?

 

[DashRiprock]

"Food prices go up -> farmers get more money -> plant more seeds -> other farmers catch on -> more food available"

Hugh Hendry

 

[Bullishbear]

"Trading FX is ethical, trading commodities isn't"

Interesting concept. Do you believe that the relative value of a country's currency has zero impact to it's economy?

For example, what if a bunch of speculators hammer the sterling next week because of some rumor? Do you believe that would have zero impact on imports(i.e., commodities) and the economy?

 

[new_trader]

"Trading FX is ethical, trading commodities isn't"

Interesting concept. Do you believe that the relative value of a country's currency has zero impact to it's economy?

For example, what if a bunch of speculators hammer the sterling next week because of some rumor? Do you believe that would have zero impact on imports(i.e., commodities) and the economy?

No, they are the bad FX traders. The good FX traders are the spred bettas who sit on their lard arses all day waiting for their ‘edge’ to give them a perfect set-up and then bet 50p/pip.

 

[montmorencyt2w]

In answer to Black Swan's original question, while I don't know that trading in FX is particularly ethical, I would feel uncomfortable trading in staple foodstuffs purely for speculative reasons, not of course that my piddling little trades would have the slightest effect on world prices. It's just not something I'd feel good about doing.

Admittedly, trading in oil is also somewhat questionable.
I'm not worried about gold, since not many real people actually need gold.


Interesting points raised about climate change, but that's for another thread, surely?

 

[Pazienza]

Interesting points raised about climate change, but that's for another thread, surely?

Yes, it would be good to stay on topic if possible.

 

[new_trader]

I'm going long on wheat Monday because I hate poor people.

 

[Pazienza]

I'm going long on wheat Monday because I hate poor people.

On the other hand I'm shorting the euro - canonisation beckons!

 

[Shakone]

What is ethical? Is it ethical to work in a country like the UK and support it, and pay taxes to it so that it can invest in weapons and blow innocent children to smithereens in far off lands. Is it ethical to not work, and not support it, and have other people working all their lives paying for your benefits? Is it ethical to even have children when the world is overpopulated and consuming too many resources?

Worrying about ethics is pointless. Look after yourself and your family and their future. These are all that really matter. And for the big scheme, you probably have very little affect anyway, so not even worth thinking about.

 

[Bullishbear]

No, they are the bad FX traders. The good FX traders are the spred bettas who sit on their lard arses all day waiting for their ‘edge’ to give them a perfect set-up and then bet 50p/pip.

:cheesy:

 

[Pazienza]

And for the big scheme, you probably have very little affect anyway, so not even worth thinking about.

That's not true. Black "Walter Mitty" Swan is a very profitable swing trader / position trader / scalper off the smalls (delete according to what rubbish he's spouting that week) . He grabs a lot of pips by flying under the radar tbh bud. He swings a big line, that's why they call him the Boy Bullsh1t Plunger.

I think he's prolly having a big impact on the market. Bless...

 

[tomorton]

Surely trading anything is as likely to drive its price down as up? (I'm not saying low prices are better for the worst off than high prices)

 

[scose-no-doubt]

This whole argument hinges on what % of global commodities are exchange traded and to what degree price factors into certain otc dealings. The economic reality of commodity trading isn't simple or black and white and can differ greatly depending on geography. Take kuwait for example. Anyway,fruitless discussion imo and all rather irrelevant. All of us buy polluting goods we dont really need made by kids and p1ss poor farmers and we hardly ever consider the ethics in those types of transactions.

 

[Black Swan]

"Trading FX is ethical, trading commodities isn't"

Interesting concept. Do you believe that the relative value of a country's currency has zero impact to it's economy?

For example, what if a bunch of speculators hammer the sterling next week because of some rumor? Do you believe that would have zero impact on imports(i.e., commodities) and the economy?

Thanks for (attempting) to stay on thread. Sadly it's becoming an increasingly rare phenomena on T2W. The question posed was straightforward and it's a shame so much narrow opinion has already been spewed to render the thread and any further debate pointless.

 

[Pazienza]

Sadly it's becoming an increasingly rare phenomena on T2W. The question posed was straightforward and it's a shame so much narrow opinion has already been spewed to render the thread and any further debate pointless.

It could be that Walter, it could be. Or it could be that the original question was so stupid, and revealed such a lack of understanding of, well anything really, that once you've said "No, this is stupid" there's not much left to say...