Some examples are shown in table 16-4.
Their daily trading limit will obviously affect the efficiency of the market. If the market conditions indicate that the wheat price should drop by 0.30 USD and the daily limit price is 0.20 USD, it is obvious that the wheat price was out of balance when it opened the next morning. However, the desire to prevent market panic often ignores the desire of commodity markets for total market efficiency. However, many transactions may take place on the same day. For example, recalling the change of wheat price of $0.20 is the daily limit, which is enough to bring great pressure to investors and make them repeatedly increase their marginal positions. In a typical 5,000-bushel contract, this would mean a daily loss of $65,438+$0,000.
Read the market situation
Our concern about explaining the market was quoted in the We edition of the daily newspaper. The excerpts shown in table 16-5 and page 466 cover 2/kloc-0 editors of The Wall Street Journal (accounting for about 40% of the contracts reported that day) from1October 26th197 10.
In each case, we see that the contract can be purchased for several months as a wide choice. For example. Corn traded on the Chicago Board of Trade (CBT) has futures contracts in March, May, July, September and 65438+February. Some goods provide a contract almost every month. Directly check some deadlines in the form, and we guide the corn contract (CBT) section in the form 16-6 on page 467.
The second line in the table shows that the corn we exchanged in CBT is a transaction. Then we noticed that corn was traded in units of 5000 bushels, and the price per bushel was quoted in units of minutes.