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Off topic on topic but futures trading is pretty much the most useful actual trading out there. One can argue people are gambling (otherwise known as "investin
by mrlala 7y ago
Off topic on topic but futures trading is pretty much the most useful actual trading out there. One can argue people are gambling (otherwise known as "investing") almost 99% of the time with trading.. but futures can actually be used for mutual gain.
You are a corn grower and want to lock in a price 6 months from now. You are someone who buys a lot of corn and want to lock in the price 6 months from now. Futures allow you in essence to meet up in a highly liquid exchange where you can lock in those prices for the buyer/seller. Win-win for both, because they get the price security they desired.
Of course the vast majority of futures is speculative, which provides liquidity for the hedgers..