This is the Chicago Mercantile Exchange.

About 86 businessmen were placed in cafes.

Chicago was an agricultural area in the United States at that time, so. Anyway, the land in Chicago is fertile and produces a lot of agricultural products. However, due to weather, natural disasters and other reasons, the price fluctuates greatly every year.

So people began to sign forward contracts to avoid price fluctuations, and then forward contracts could be transferred, so they became futures trading.

It means to avoid risks. For farmers, no matter what the weather is like next year, they will make a deal at the contract price. For example, in the second year of high income, the price is naturally very low, but because there is a contract in advance, no matter what the spot price is, it will be traded at the contract price. He gave up more profits he might have, but he wouldn't suffer.

For the buyer, no matter how high the spot price is in the second year, it will be sold at the contract price.

He also gave up the possibility of buying at a low price, but also avoided the losses caused by rising prices.

The meaning is to avoid risks, and the meaning of futures itself is to find prices and avoid risks.

The risk is later borne by speculators, who may also make money, because producers and buyers give up possible gains.