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> So you go to the futures market and take a bet that the input prices will increase. If you’re right, you win $, which makes your widget manufacturing profitab
by newswasboring 3y ago
> So you go to the futures market and take a bet that the input prices will increase. If you’re right, you win $, which makes your widget manufacturing profitable and you’re still in business.
This isn't remotely how manufacturing works. Manufacturers are focused on making the widget, for them the most important thing is that material is available, not a paper contract.
- kortilla 3y agoFutures offer physical delivery. At least try to understand how the market works before you claim it’s pointless.
- newswasboring 3y agoYes, but finance bros are not buying it for physical delivery. We are talking about speculation here after all.