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by twic 782 days ago
> Imagine trading pork belly futures but the typical pig doubled in size every six months.

My gut feeling is that a lot of traders would relish the excitement of that.

1 comments

Right, and Enron would probably have enjoyed it, and that's why they dreamt it up. But a market can't survive on traders.

It needs real buyers and sellers who aren't looking to capture inefficiencies in the market but to smooth out uncertainties in their cashflow. Dell, Apple, Samsung, TI, etc. They would find it didn't offer them a good hedge.