2007-03-21 12:14:53 · 2 answers · asked by Chris H 1 in Business & Finance ➔ Investing
these are called commodities, and you are buying or selling what is know as 'futures'. These are contracts that represent a given quantity (as in bushels of corn) that are to be delivered at a specified date in the future. There are two main players in this market, the speculator, who is just hoping for favorable price movements to his advantage, and the hedge client. The hedge client, say a turkey farmer that buys tons of corn as turkey feed, will 'lock in' a price for his future purchase of corn. This way he eliminates the risk of big cost rises for his needed corn feed. If the price of corn drops, he benefits by buying corn at the lower price, and absorbs the loss of the futures contract just as an insurance premium is gone if a claim is never made.
2007-03-21 12:39:47 · answer #1 · answered by Charles V 4 · 1⤊ 0⤋
Maybe try www.stock-exc.com
2007-03-21 12:22:16 · answer #2 · answered by Anonymous · 0⤊ 0⤋