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>Good Morning RealTraders:
>
>QUESTIONS:
>
>Why do we have contracts that expire by a specified month on the CME?
Many speculators (that's us) tend to forget why the markets exist in the
first place. Futures contracts are forward contracts that exist solely for
the purpose of laying off the risk of doing business onto people willing to
take that risk (i.e., us)
Farmers want to be able to know what they will be selling their wheat for
before it is harvested (or even planted). Bakeries want to be able to set
their prices for Twinkies with some consistency. US firms being paid in
Swiss Francs want to make sure they get paid a certain US dollar rate.
Anyway, you get the idea.
>
>Why can't we have (continuous contracts) (?) like the spot FOREX market?
>
>
I suppose philosophically, the markets are "continuous" but they are not
"contracts." As far as I know nobody is stopping you from buying anything
you want. There are "spot" or "cash" markets in every tradeable commodity.
Want 40,000 lbs of live cattle or 5,000 bushels of corn?. Hey, no problem.
Just pick up the phone and order it.
>Richard J. Chehovin
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