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To: Solon who wrote (50971)	9/8/2006 7:24:43 PM
From: TimF	Read Replies (1) \| Respond to of 90947

Hedging does not change the fact that it is zero sum. A contract to be bought must be sold. The gain equals the loss. The direct gain from the transaction equals the direct loss, but there can be indirect gains. Spreading risk to those willing to take it is a gain. Also the futures contracts are contracts for something, pork bellies, currency, oil, gold, whatever. They help set the market price for that thing, which is also a gain.