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| Thank you JPartner for replying. I am not sure what you mean about hedges to become trades and trades become hedges. In the index world it is all speculation. There are hedges, for instance, right now as the market is on all time highs, people will Sell Short long term futures to lock in the current index price to protect against a downturn. They futures become an insurance policy on longer holds. Those traders don't trade much. There are swing traders that hold for price points that might be over several days, weeks and even months, then there are the day trading scalpers that in and out multiple times a day.
In the ag-side for farmers I would think the futures are actually used the way they were designed to be use, to lock a current price on a future deliverable. I think, and again i know nothing really, that farmers might want to lock in today's price on a future crop like selling corn futures on a high to lock in that price against current storage. Is that right? and if so how long do these position traders look out and how do they learn how to do that?
Thanks again
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Is building a AG based Trading Room a good idea?
