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  • Digg it UP - The History of Futures

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    aph. About the same time, the McCormick reaper was introduced; this machine revolutionized wheat production and lead to tremendous increases in yields at
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    With a history of over 160 years, futures trading has a rich past as well as a bright road ahead. Although futures trading has been around for such a long time, it is currently viewed by many as the ”next new thing.” With the buzz that has been surrounding futures, a little history lesson in commodity trading might be in order.

    The Origins of the Futures Markets

    The origins of futures markets are found during the 1840’s, when Chicago was transformed from a sleepy town to a booming commercial center. No longer isolated from the East, Chicago now was connected by both the railroad and the telegraph. About the same time, the McCormick reaper was introduced; this machine revolutionized wheat production and lead to tremendous increases in yields at

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    g time, it is currently viewed by many as the ”next new thing.” With the buzz that has been surrounding futures, a little history lesson in commodity trading might be in order.

    The Origins of the Futures Markets

    The origins of futures markets are found during the 1840’s, when Chicago was transformed from a sleepy town to a booming commercial center. No longer isolated from the East, Chicago now was connected by both the railroad and the telegraph. About the same time, the McCormick reaper was introduced; this machine revolutionized wheat production and lead to tremendous increases in yields at

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    The Origins of the Futures Markets

    The origins of futures markets are found during the 1840’s, when Chicago was transformed from a sleepy town to a booming commercial center. No longer isolated from the East, Chicago now was connected by both the railroad and the telegraph. About the same time, the McCormick reaper was introduced; this machine revolutionized wheat production and lead to tremendous increases in yields at

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    formed from a sleepy town to a booming commercial center. No longer isolated from the East, Chicago now was connected by both the railroad and the telegraph. About the same time, the McCormick reaper was introduced; this machine revolutionized wheat production and lead to tremendous increases in yields at
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    aph. About the same time, the McCormick reaper was introduced; this machine revolutionized wheat production and lead to tremendous increases in yields at harvest time. Farmers from throughout the Midwest came to Chicago to wheat dealers; these dealers in turn shipped the wheat all over the country.

    When a farmer arrived in Chicago, he was hopeful that he would receive a fair price for his crops. Unfortunately, the city had very few storage centers and no standard methods for weighing or grading the grain, creating a very unstable market. In the end, a farmer was left hoping for the best, having to rely on the dealer to be fair with his evaluation and pricing.

    Creating a Fair Solution

    In 1848 a central location was opened, the predecessor

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