April 26, 2012
- in Uncategorized by schooloftrade
Speculators driving prices higher on Crude Oil and Gold? What say YOU?
Here’s a great video explaining WHY the futures markets are VITAL to any free market.
Farmers began using Commodity Futures to hedge against famine, drought, or falling prices over 150 years ago. Futures began in Japan, and are OLDER than most equity markets across the globe.
“a farmer concerned with a possible drop in corn prices would sell Corn futures to hedge against falling prices”
Professional Traders use Financial Futures to help businesses operate, keeping costs down, and managing the risk.
Politicians LOVE to paint the day traders as the problem…but ask your local Politician what the OTHER option is? What would the markets look like without Futures? Scary.
