3 ms·
To be fair, you could also be a real world user of a commodity and productively use futures markets. For example, an airline or trucking company using them to h
by spacebanana7 5mo ago
To be fair, you could also be a real world user of a commodity and productively use futures markets. For example, an airline or trucking company using them to hedge fuel prices.
- nyeah 5mo agoSure, and increasingly those people are being played for suckers. The article makes that point.
- mothballed 5mo agoLess so than those buying it for spot? They need oil one way or another, whether from a future contract or the spot market (or downstream thereof).
- tardedmeme 5mo agoThen your average price is higher than average. I heard airlines don't use futures any more because they need to keep costs low.
- rbanffy 5mo agoFuture exists to stabilize instantaneous commodity prices. They also allow some insights on future demand, which can help you plan production of your commodity.