Futures commodity trading and what it entails
It's a common sight on the nightly news- a wild crowd of people standing packed in like sardines, who are shouting and gesturing wildly. For those who aren't familiar with the business, it can look pretty intimidating. But, those who know the futures market are fully aware of the methods behind the madness.
However, those who work in that environment know exactly what's going on, and they're very organized. In this article, you'll learn a bit about the trading of futures, so that you will know how the process works.
Today's futures trading floor is much different than it was when it first began quite a long time ago. They'd set up a stall on the roadside, and sit and wait for someone to buy something. Often, their crops would spoil because the farmers had no way to preserve or store them.
They'd set up a stall on the roadside, and sit and wait for someone to buy something. Often, crops would spoil because the farmers had no way to preserve or store them.
Initially, the first organized and central marketplaces were created to provide spot prices for immediate delivery. Shortly thereafter, forward contracts were also established. These 'forwards' were forerunners to the present day futures contract.
Current prices and bid amounts are electronically transmitted instantly, worldwide. It doesn't really matter where the buyer or seller is, they will get the same general information that everybody else has.
Regardless of the speculator's location, the playing field is leveled because everyone has access to the exact same information. It could be one of your competitors who takes your trade, or another speculator. - 23199
However, those who work in that environment know exactly what's going on, and they're very organized. In this article, you'll learn a bit about the trading of futures, so that you will know how the process works.
Today's futures trading floor is much different than it was when it first began quite a long time ago. They'd set up a stall on the roadside, and sit and wait for someone to buy something. Often, their crops would spoil because the farmers had no way to preserve or store them.
They'd set up a stall on the roadside, and sit and wait for someone to buy something. Often, crops would spoil because the farmers had no way to preserve or store them.
Initially, the first organized and central marketplaces were created to provide spot prices for immediate delivery. Shortly thereafter, forward contracts were also established. These 'forwards' were forerunners to the present day futures contract.
Current prices and bid amounts are electronically transmitted instantly, worldwide. It doesn't really matter where the buyer or seller is, they will get the same general information that everybody else has.
Regardless of the speculator's location, the playing field is leveled because everyone has access to the exact same information. It could be one of your competitors who takes your trade, or another speculator. - 23199
posted by X - Men @ 2:19 AM
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