Читать книгу The Trade Lifecycle - Baker Robert P. - Страница 13

We use the example of a forward trade to illustrate various market participants. Other trades such as spot trades (immediate buy and sell) and options (rights to buy and sell in the future) have similar participation.

Producer

Imagine an apple grower owning a number of orchards. His product sells once a year and his entire income is dependent upon the size and price of his harvest. He can take steps to maximise his crop but he can do little to predict or control the price. He would rather have a fixed and known price for his produce than be subject to the vagaries of the market price at harvest time. How does he achieve a fixed price? He enters into a forward trade with a speculator obliging him to supply a fixed quantity of apples in return for a guaranteed price. He has now removed price uncertainty (or risk) and can concentrate on producing enough apples to meet his obligation.

Consumer

A cider manufacturer requires a certain supply of apples in six months' time. He is willing to pay more than the current market value to guarantee fresh stock is available when it is useful to him. His desire is to reduce his exposure to fluctuation of supply.

Speculator

A speculator takes a view on the likely direction of price change. If he sees a future shortage of apples, he will buy forward contracts now and hope to take advantage of his ability to supply later. He will take the opposite position and sell forward contracts if he forecasts a future glut. He is a risk taker, prepared to take advantage of other market participants' desire to reduce their level of risk.

Market maker

The market maker brings together buyers and sellers. He creates a market where it might be difficult for them to trade directly. He doesn't require the produce himself, nor does he have a view on the direction of price change; he is the middleman. He makes the market more efficient and helps to ensure prices reflect supply and demand.