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Forum: Commodities

October 26th, 2015, 09:54 AM

Replies: 37

Why are futures contracts so large?

Views: 8,877

Posted By bobwest

You beat me to it. :becky: They still refer...

You beat me to it. :becky:

They still refer to contracts as "cars," because originally the size of one contract was a railroad carload of whatever the commodity is. That's big.

I have no idea...

Forum: Commodities

October 26th, 2015, 09:16 AM

Replies: 37

Why are futures contracts so large?

Views: 8,877

Posted By bobwest

Just shows you that there's more than one way to...

Just shows you that there's more than one way to look at anything. :sarcastic:

I'm not in it to hedge, that's for sure. Still, the need for hedgers to protect themselves is a big part of what is...

Forum: Commodities

October 26th, 2015, 08:32 AM

Replies: 37

Why are futures contracts so large?

Views: 8,877

Posted By bobwest

"Because they were made for commercial hedging"...

"Because they were made for commercial hedging" is just about the correct answer for any question about futures. That's what they are for, and why they exist. :becky:

Bob.

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