Economics of Futures Trading

The book, which is divided into four major parts: Description, Economics, Use, and Market Operation, covers the terminology of futures trade, its esoteric nature, and its historical development. It explains what is a futures contract, what is the role of speculation, how the force of competition serves the need for price discovery, why there is a the need for regulation, as well as such intrinsic fundamentals of futures such as risk shifting, open interest, and the relationship between cash and futures.