Easier access and increased information sharing led many to pursue careers in futures trading.
to protect their financial interests against losses in other investment areas, such as stocks and bonds.
With the evolvement of technology, exchanges can now link together, expanding the number of transactions.
Exchanges all over the world are connected through systems that automatically enter an order placed on one exchange but executed on another.
Factors such as weather, conflict, and supply and demand wreaked havoc on pricing.
In addition, as supplies became more plentiful, storage was necessary; merchants sought ways to raise money while their product sat until being sold. According to Bruce Babcock, a noted commodity authority, the first recorded commodity futures trades occurred in 17 In the US during the early 1800s, agricultural commodities – notably grains – were brought from Midwest farmlands to Chicago for storage until being shipped out to the east coast.
During the early years of the 21 century, several markets combined to form super-exchanges which offer a broader selection of contracts that can be traded.
Through Internet activity, futures traders on remote islands can interact through brokers in large cities worldwide, thus creating a diverse global marketplace for establishing commodity pricing.
As trading developed, producers and dealers looked for ways to preserve the price of their products.
Their interest is not necessarily securing the price of goods they will take control of; rather they use While the first futures trading involved primarily the farmers and dealers, today's traders could include your neighbor or coworker.
Currently, the ten most active exchanges conduct over one billion trades per year, and there are exchanges in over 30 countries.
There are also smaller exchanges that specialize in one particular futures class, such as Eurex US which focuses on contracts that compare international currencies.
As more speculators entered the markets, exchanges look for ways to facilitate more trading.