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brudgersyesterday at 4:05 PM2 repliesview on HN

The point is making money.


Replies

mpmpmpmptoday at 12:11 AM

For speculators yes. But for a farmer and the consumer of the goods they would rather lock in a margin for their goods and run their business than risk guessing what the price will be at harvest time or consumption time. It’s called hedging.

mhh__yesterday at 5:01 PM

many users of derivatives willingly lose money on them because the purpose of these contracts is to transfer risk to those willing to hold it.

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