In the finance market, the creative people implemented the derivative market to minimise the risk. Hence, various material or product has trading in this sub market.
Spot market or current market provided one way direction. Derivative market provided alternate choice. In this new creative way of investment, finance market become attractive and complex.
Today, a lot of country faced the problem on supply the basic need to their population/nation because of high price on food. But in the derivative market has been created some super rich man. They never spend a single effort to the plant. They hide in the room and use their computer manipulated or invest to accumulate the wealth. The high tech help them use an easy way become a riches man in the world.
In the human history, if you need food and clothes. You must use some other difference food and clothes to exchange. Initially the currency notes replace it and now the certificate/securities replace it.
The derivative market allows the future finished goods or goods in progress trading in advance. The intelligent human controlling the price and demand/supply. They also use an excuse or created a story in the media to influenced people panic to buy/sell more products.
The central bank must have a rule to monitor the basic need of people. The derivative market system should be allows those extra production can trading in the market. If the demand is higher than supply or demand all depend on imported. Such trading of goods should be bar in the derivative market.
Derivative market is use to balance of supply and demand of good. I also believed farmer use it to well know the future price in the market and control the cost.
Spot market or current market provided one way direction. Derivative market provided alternate choice. In this new creative way of investment, finance market become attractive and complex.
Today, a lot of country faced the problem on supply the basic need to their population/nation because of high price on food. But in the derivative market has been created some super rich man. They never spend a single effort to the plant. They hide in the room and use their computer manipulated or invest to accumulate the wealth. The high tech help them use an easy way become a riches man in the world.
In the human history, if you need food and clothes. You must use some other difference food and clothes to exchange. Initially the currency notes replace it and now the certificate/securities replace it.
The derivative market allows the future finished goods or goods in progress trading in advance. The intelligent human controlling the price and demand/supply. They also use an excuse or created a story in the media to influenced people panic to buy/sell more products.
The central bank must have a rule to monitor the basic need of people. The derivative market system should be allows those extra production can trading in the market. If the demand is higher than supply or demand all depend on imported. Such trading of goods should be bar in the derivative market.
Derivative market is use to balance of supply and demand of good. I also believed farmer use it to well know the future price in the market and control the cost.
2 comments:
the major problem facing today is too much capital flocking around.. derivative product at first is created for hedging purpose which means to control trading risk. However due to globalisation, trillion dollar of capital flow each single trading day is uncontrolled and can simply leverage a trading swing. This is why u see the petroleum price shoot up from 50USD/barrel to 140USD/barrel within a year. Do you think the demand is tripled? nope, actually the fact is, the demand is reducing while supplying is increasing this year. So think about it..
I am 100% agree. Your opinion is good.
The whole world Government does not admitted the actual situation. They encoraging people money find money way to live.
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