To understand the world of risk management and futures exchanges, let's take a little refresher course in economics, specifically microeconomics – and the simple balance between supply and demand.
The bigger picture
The global economy is based on all sorts of things that are bought and sold every day. Futures exchanges provide markets for them – from agricultural crops and livestock; to metals and natural resources; to interest rates, stock indexes and foreign currencies. It truly is a global marketplace, and futures exchanges are among the world’s leading forums for buying and selling.