In a publication by the CFTC titled The Economic Purpose of Futures Markets (February 3, 2006), the

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In a publication by the CFTC titled "The Economic Purpose of Futures Markets" (February 3, 2006), the following statement appears: Many people think that futures markets are just about speculating or "gambling." While it is true that futures markets can be used for speculating, this is not the primary reason for their existence. Futures markets are actually designed as vehicles for hedging and risk management, that is, to hclp people avoid "gambling" when they don't want to.

Explain why.

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Related Book For  answer-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

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