Risk Management Goes to Grad School: A CBOT primer: New ways to manage risk

摘要

Before 1848 farmers brought wagons of grain to Chicago, and took the price a buyer offered or returned home. Some opted to dump their grain in the Lake when prices got too cheap. The system was easy, but not very useful. The 1848 launch of the CBOT introduced forward cash prices, which evolved over the years into standardized ag futures contracts at Chicago, Kansas City and Minneapolis. Managing risk became more complex but the results were worth the effort for farmers, as well as for buyers that needed grain throughout the year. The first formal clearing systern was established by the CBOT in 1883 to further improve efficiency and ease of entry and exit with futures.