The first stop of
our trip was the Chicago Board of Trade. After 20 minutes of walking through
downtown Chicago trying to navigate through complex street lights without
getting hit or separated, observing the buildings, interesting people and
informative signs like “3000 people are hit by cars every year in Chicago” we
made it to the Chicago Board of Trade safely.
When
the Trading began at 9:30 with the ring of a bell all the brokers and
speculators instantly started yelling and giving hand signals so fast it seemed
almost like chaos. Things would happen so fast it was hard to make out the
details about the number of contracts and their prices. I can’t even imagine
how crazy it would have been down on the floor back when all the trading was
done face to face instead of now when only 10% of the trading occurs face to
face.
It
was very interesting to see how things actually happen and work when farmers
use hedging to reduce price risks for the future sales of their crops.
Michael Goudy
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