Real0ne
Posts: 21189
Joined: 10/25/2004 Status: offline
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quote:
ORIGINAL: MrRodgers First of all, futures contracts exist only as a means to speculate and trade commodities without needing more than a piece of paper...not the commodity itself. As what capitalism is...turning paper into money, it is a profit vehicle, nothing more. Yes, one can lose and lose big too if you time it wrong. I agree but to change that it is a "gambling vehicle" Because there are billion$ thrown at speculation in commodities, it can and often does move prices. That price for those that are willing to be objective and learn, become the same thing they call it on oil...the benchmark price, i.e., the price at which all sales negotiation begins. The futures market then forces...yes forces producers to buy in order to hedge their capital for the insuing further speculation. Well since farmers plant, and grow the farmer is always on the same side of the trade. Believe it or not kinkroids, depending on their timing, producers can lose money buying futures, but...they lose as little as possible. Anybody here actually tell me how producers can lose money investing in (buying) rising futures ? anything from manipulation to being on the wrong side of the trade. how many single family small time farmers understand how to hedge the futures market? The extent most farmers understand it is thats the price of hogs whatever.
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"We the Borg" of the us imperialists....resistance is futile Democracy; The 'People' voted on 'which' amendment? Yesterdays tinfoil is today's reality! "No man's life, liberty, or property is safe while the legislature is in session
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