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Why Futures Exist

Discussion in 'Education, Tutorials & Courses' started by FXStreet_Team, Dec 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Futures exist for one reason and one reason only, to manage price risk! Some form of Futures trading has been around for hundreds of years for people who have owned a physical commodity or needed to own a physical commodity. These people or entities would be called commercial traders. They use the physical commodity in their day to day business. Perhaps they have grown it, extracted it from the earth or produced it. These commercials would be known as producers. If they needed to purchase a

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