Explain Like I'm 5 (ELI5)
Objective and layman-
ELI5:. How did climate change become a partisan issue?
ELI5: How does futures trading work?
I just watched “Trading Places”, circa 1983 staring Dan Aykroyd and Eddie Murphy. I understand that Valentine and Winthorp sold high and bought low, but I’m not entirely clear on how they could sell futures they didn’t yet have purchased already. Unless of course the plan was to buy contracts when the market dips.
I guess the way I think about it, it’s fraudulent to sell someone contracts for something you don’t already have secured, just seems odd. So I started wondering if I simply don’t know how futures trading works.