C1L1-1
© 2000 MBH Commodity Advisors, Inc.
Jake Bernstein’s
Online Trading Courses
Course #1
Basic Training/
Getting Started
MBH Commodity Advisors
n
n
P.O. Box 353
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Winnetka, Illinois 60093
Lesson #1
Background of Futures Trading
C1L1-2
© 2000 MBH Commodity Advisors, Inc.
Course #1
Basic Training/Getting Started
Lesson #1
Background of Futures Trading
Evolution of the Futures Markets ---------------------------------------------------------------- 5
What is Hedging? ---------------------------------------------------------------------------------- 5
Suppose You are a Grain Farmer -------------------------------------------------------------- 5
What are Your Options? ------------------------------------------------------------------------ 6
You Could Win or Lose ------------------------------------------------------------------------ 7
The Three Categories of Players in the Futures Games and their Roles -------------------- 7
Producers ---------------------------------------------------------------------------------------- 7
End-Users --------------------------------------------------------------------------------------- 8
Speculators -------------------------------------------------------------------------------------- 8
Why Traders Trade -------------------------------------------------------------------------------- 9
Additional Uses of the Futures Markets -------------------------------------------------------- 10
Dealing with Basic Issues First ------------------------------------------------------------------ 11
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