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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: JMTrader who wrote (158330)	6/26/2021 6:46:23 AM
From: GROUND ZERO™	1 Recommendation Recommended By Mevis Read Replies (1) \| Respond to of 222434

Right, there was only one size SP futures contract and it was absolutely HUGE!!! At the time, no one though it was huge because that was all there was... The futures market was originally designed and intended for the farmers and ranchers to be able to "lock in" a good price for their crops before the crops were actually ready for harvest... this way a wheat farmer, for example, didn't have to wait to harvest his crops and then have no choice but to sell his crops at whatever the crop was selling for at the time... he could now sell his crops many months in advance and at a better price by shorting the futures... that's why they're called contracts, they were actually advance contracts on the future sale of that farmer's crops... Over the years, as more and more people and non farmers began trading the futures markets, it expanded to more and more kinds of crops and more and more markets that had nothing to do with agriculture, eventually into the financial and equity markets we have today... GZ