Comment by charlieyu1
3 years ago
Provide liquidity. Speculators are trying to make profit, but their existence is important to make sure the farmers are correctly priced.
Do farmers prefer that? Yes, the larger the futures market, the price of selling futures will be closer to optimal. If the market is illiquid, farmers often have to sell futures at a lower prices to market makers.
No comments yet
Contribute on Hacker News ↗