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Rivers, MB | I've been told that one reason why the speculators are good for a market is that it adds liquidity. If it was only the people that are actually involved in the growing and using of a product, many markets would be so thinly traded that it would be hard to get in and out of the market at any given time. This would be more true in a market such as Minneapolis or the canola/barley futures in Winnipeg.
I would agree though that in theory, if the only people that could trade were the people that were actually involved in growing, handling, and using any given product, the futures market should be a more accurate reflection of what the actual product is worth. However, not all things in life follow theory! | |
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Anyone read DTN comment on reason for expanded limits....
