They include hedgers trying to lay off risk as well as speculators who want to capitalize on market moves. If you eat, you're affected by the KCBT or another agricultural commodity exchange. The wheat futures contracts traded at the KCBT contribute to the steady flow of products from the farm to your dinner table. Similarly, you are affected by the KCBT or another exchange whenever you are someplace that is heated by natural gas. Again, futures contracts help to balance natural gas supplies with demand.
Futures trading appears manic.
Yet traders are communicating with a special language as they yell and wave their arms. Traders use a series of hand signals and a type of verbal short-hand to indicate whether they're buying or selling and at what price. They yell because they need to be heard in the loud, competitive environment of the trading pit. Traders wear brightly colored jackets to attract attention. They may need to grab someone's eye during hectic trading activity, and the color may be enough to do the job.