What Is the Principle Reason for the Trading of Commodities Futures?

Monday, May 16th, 2011 at 6:04 am  
Comments (2)

Question posed by Ronnie: What is the principle reason for the trading of commodities futures?
Please help!

Chosen answer:

Answer by jeff410
Hedging. To lock in a price for the commodity at a future date to reduce the risk of fluctuatons in the price you can buy the commodity now, in the spot market.

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Why Would the Car Dealer Push You to Lease Than Buy?

Saturday, June 20th, 2009 at 2:32 pm  
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answers asked:


I was at the Cadillac dealership yesterday looking at new cars. The dealer pushed hard to get me to lease than buy a new car. His reason: cars are depreciating commodities and there is no point investing so much money into it. I would think they would be more interested in selling cars. Any insights what is their hidden advantage in leasing cars over selling?