ETF Trends
ETF Trends

By Paul K. Bates via Iris.xyz

At their most fundamental level, all markets are structured for the transference of risk—from the person who wishes to lay off risk to the person who wishes to take on risk, all with a reasonable payment to the person or organization that facilitates the transfer.

The grain farmer sells her anticipated crop at a fixed price in the futures market in order to lock in her margins when she delivers, while the grain price speculator takes the other side of that transaction in the hope of profiting from a speculative trade.

So it’s easy for us to know both our investment motives, and the market mechanisms by which we achieve those motives, right?

Click here to read the full story on Iris.xyz.