Money & WorkHow it works

How a farmer locks in autumn's price back in spring.

A future is an exchange-standardised contract covering quantity, quality and delivery date. Selling the harvest before it exists means knowing your price – the other side takes the price risk. Both post collateral, known as margin.

Useful: Under three percent of contracts end in real delivery; the rest are closed out before maturity.

Source: de.wikipedia.org

BoerseHandel Risiko

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