Submitted by Dow Futures on Sat, 01/14/2012 - 02:03.
Dow Futures contracts trade on an exchange, meaning that the exchange serves as the counter-party of every position. Otherwise, you would always have to worry about the person who held the other side of your position. If they were to go bankrupt, die, or be unable to fulfill their side of the deal, you would be out in the cold; a perfectly good position could go belly up because they couldn't live up to their side of the bargain.
Comments
Into the fires of battle, unto the Anvil of War!
I always liked Necromunda, except for the RANDOM perks.
the exchange serves as the counter-party of every position.
Otherwise, you would always have to worry about the person
who held the other side of your position. If they were to
go bankrupt, die, or be unable to fulfill their side of
the deal, you would be out in the cold; a perfectly good
position could go belly up because they couldn't live up
to their side of the bargain.
Dow Future