In markets that trade natural products, such as agricultural, fishery, energy, and commodities markets, oversupply or at least excess supply causes problems. When supply is high, prices plummet, causing significant damage to producers; conversely, when supply is low, prices rise, and consumer sentiment diminishes. As a result, both suppliers and consumers suffer. The challenge is that it is difficult to intentionally set the level of production. Because of this, a futures market develops in situations where we have to accept what nature provides. Futures trading is a method in which a producer and a distributor agree in advance to trade the price of an item to be produced in the future, without knowing the exact quantity yet. In other words, in futures trading, the focus is on price rather than quantity. Since it is challenging to stock items that require freshness, futures trading offers advantages by allowing transactions to be made in advance. However, if supply fluctuates too much,...
Addiction arises from the allure of immediate rewards. These instant gratifications clearly activate our brains, attracting those who favor such rewards. They play a critical role in shaping human activities and contributing to addiction. For example, if a student struggling to focus notices immediate improvements after studying for just a little while, they are likely to keep studying diligently. Similarly, if stock investors can confirm the traded stock price a month or a year later during their transactions, they may lose interest in trading. The timing of rewards greatly influences human interactions and societal structures. - Joseph’s “just my thoughts”