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Old 6th Jul 2011, 12:50
  #19 (permalink)  
Metro man
 
Join Date: Jan 2000
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The futures and options market is simply a means of transfering risk from those who wish to avoid it, to those who expect to make a profit by assuming it.

An airline selling tickets could easily bankrupt itself if it sold advance bookings based on fuel being cheap and there was a sudden surge in oil prices.

It's because of the futures market that you can lock in a airfare months in advance, surely preferable to not knowing the cost until the day you depart and possibly ending up spending far more than you expected.
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