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Introduction: The Economics of Futures Trading

  • B. A. Goss
  • B. S. Yamey

Abstract

Futures trading in an organised commodity market or exchange consists of the sale and purchase of the commodity through the medium of highly standardised futures contracts (called futures) which provide for the delivery of the defined subject-matter at defined future dates. Futures contracts are contracts which provide for the delivery of the contracted goods; but in fact in many futures markets only a small proportion of all contracts are settled by actual delivery. Hence futures markets are sometimes also referred to as paper markets; it is possible to deal in futures without ever actually seeing or handling the physical commodity.

Keywords

Actual Market Future Market Future Price Maturity Basis Price Movement 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    R. J. Gare, letter in The Times, 14 Feb. 1975.Google Scholar

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1976

Authors and Affiliations

  • B. A. Goss
    • 1
  • B. S. Yamey
    • 2
  1. 1.Monash UniversityAustralia
  2. 2.The London School of Economics and Political ScienceUniversity of LondonUK

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