2 ms·
Commodities are eventually consumed or used. Traders don't buy wheat futures for the joy of collecting wheat futures, they buy them because eventually some busi
by ALittleLight 5y ago
Commodities are eventually consumed or used. Traders don't buy wheat futures for the joy of collecting wheat futures, they buy them because eventually some business wants to buy and use the actual wheat.
The "and use" phrase is what differentiates commodities from cryptocurrency.
- vageli 5y agoSure corporations use futures to ensure stable prices but there are also traders that specifically just trade futures without any hope for receiving the underlying commodity.