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info I just found out bout my wheat contract
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plowboy
Posted 6/19/2007 17:06 (#164451 - in reply to #164416)
Subject: Re: info I just found out bout my wheat contract



Brazilton KS

They're gonna make money on it either way....it's gonna cost more to get out of a cash contract then it would to get out of the underlying futures contract it is based on.  Either you will have to pay more then you actually lost, or you will get less then the market gains if it has been in your favor.  As it should be. 

Like I said above, if you want a liftable hedge, use the futures.  Cash forward contracts are not ment to be lifted.   "why" he wants to lift it is not really relevant, the cost is the same.

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