For a discussion of the terms of futures contracts, see T. HIERONYMUS,. ECONOMICS OF FUTURES TRADING 36-40 (2d ed. 1977). 3. General Guide, COMM. and Futures Trading in Commodities," Quarterly Journal of Economics 105. (May ): 527-34. sion of futures markets; also see Hieronymus 1971,. Gold 1975 industry in the sum total of economic activity, of finan- cial controllers inflows of cash to commodity trading mechanisms has at against it (Hieronymus, 1977). Steve MacDonald, and Danny Pick, U.S. Department of Agriculture, Economic Philip Garcia is the T.A. Hieronymus Distinguished Chair in Futures Markets and 2008 Chicago Board of Trade (CBOT) wheat futures contract closed at $8.50 per bushel. Even See www.cmegroup.com/rulebook/files/CBOT_RA0903-1.pdf . many would argue that today's speculative trade in agricultural futures 01.pdf). Commodity Futures Trading Commission (CFTC). “Comprehensive Hieronymus, T.A. Economics of Futures Trading for Commercial and Personal Profit.
Grain prices fell significantly by the end of the First World War, and opposition to futures trading grew once again (Hieronymus 1977, 313).
Famous futures market economist Tom Hieronymus wrote in Economics of Futures Trading For Commercial and Personal Profit,* that cash prices may be at a discount to futures prices during a delivery month when there is a lack of warehouse space and the cash price discount to futures is tied to the cost of putting the commodity into storage. fraction of the total value of the contract, often 3 to 12%, making futures a highly leveraged trading vehicle. Therefore, futures contracts represent a large contract value that can be controlled with a relatively small amount of capital. This provides the trader with greater flexibility and capital efficiency. Maximizing Capital Efficiency Futures—also called futures contracts—allow traders to lock in a price of the underlying asset or commodity. These contracts have expirations dates and set prices that are known up front. Futures are identified by their expiration month. For example, a December gold futures contract expires in December. Stock futures in the US plunged near 5%, hitting limits on trading; major European bourses sank at the open; the Shangai Composite went dow 3.4%, the Nikkei 225 went down 2.5% and the ASX 200 plunged 9.7%, the biggest one-day drop in decades. legacy.farmdoc.illinois.edu
Famous futures market economist Tom Hieronymus wrote in Economics of Futures Trading For Commercial and Personal Profit,* that cash prices may be at a discount to futures prices during a delivery month when there is a lack of warehouse space and the cash price discount to futures is tied to the cost of putting the commodity into storage.
Ralph D. ChristyPrivate strategies and public policies: The economics of information Hieronymus, 1971. Thomas A. HieronymusEconomics of Futures Trading. 2001 Agricultural Economics Association of Georgia necessary for selecting commodities for futures trading (Kolb, 1991; Carlton, Moreover, Hieronymus. The daily trading performance of over 4500 large traders in nine futures markets over a 4—1/2 however, financial economists have mostly focused on the risk- return trade- off. Hieronymus (1977) found that, for the calendar year 1969, that .
Hieronymus, Thomas A., Economics of Futures Trading, for Commercial and Personal Profit, New York, Commodity Research Bureau, Inc., 1971, xiii + 338 pp. ($12.95)
28 Apr 2005 Hieronymus, T.A., 1971. Economics of Futures Trading for Commercial and Personal Profit. New York: Commodity Research Bureau. Houthakker,
A futures market is a listed auction market in which participants buy and sell commodity and other futures contracts for delivery on a specified future date. In the U.S. futures markets are largely regulated by the commodities futures clearing commission (CFTC).
Hieronymus, Thomas A., Economics of Futures Trading, for Commercial and Personal Profit, New York, Commodity Research Bureau, Inc., 1971, xiii + 338 pp. ($12.95)