The Manipulation and Distortion of The Stockmarket

What I look at in this article is how equitable the market place is for Futures and stock trading in commodities raising the question of how equal are the opportunities ?  The idea of protection feature strongly in economic discussions and can cover a multitude of sin from obstruction of data resulting in imperfect information to insider trading, to barriers created around the market place and red tape.  Understanding what manipulation and distortion happens in the marketplace is a critical issue if we are to understand the existing influences on the food prices. Read more…

What Are Futures and Derivatives

A ‘Future’ is an agreed contract for the sale or purchase of an asset, currency or commodity at a future date. This financial instrument came about to provide a kind of insurance to the producers so that they did not go out of business when there might be a poor harvest, for example. After intense lobbying, the US Commodity Futures Trading Commission relaxed the rules surrounding the market in 1999. Read more…