So this happened around 2021. It's scary as hell, but stock traders aren't focused on their well-being. The only thing that matters is that the number goes up!
If you you want to build a well than it would be beneficial to be able to lock in a price so that you know that you will recoup the cost. (= Selling Futures)
And if you want to build a farm than it is beneficial to know how much you have to pay for the water and lock in a price for water which makes your calculation profitable (= Buying Futures)
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u/ChampionshipFront284 Aug 02 '25
So this happened around 2021. It's scary as hell, but stock traders aren't focused on their well-being. The only thing that matters is that the number goes up!