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Who Assumes the Other Side of Every Futures Transaction

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Who assumes the other side of every futures transaction?

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Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state or future outcome.

Risk

The exposure to the possibility of loss, damage, or any other undesirable event.

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Corporate Strategy

The overarching strategy of a company, focusing on overall direction, resource allocation, and long-term objectives.

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