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Futures Trading – The Past and Present of Futures
Futures trading is one of the most difficult concepts for novice investors to comprehend. To better understand the present of futures, it’s best to look back into the past.
Back to the Futures Part I – The Origins of Futures Trading
Futures has its roots in forward contracts. Although forward contracts date back to the Middle Ages, they became most popular in 18th and 19th century America. Way back then, farmers from across the American mid-west used to bring their grain to Chicago with each harvest.
Since there was a surplus of grain available at that one time, the stockyards were able to bid down the price paid to farmers. Then later in the year, as supplies dwindled, the stockyards read more
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