I'm the new webmaster for a futures trading company and I have no idea how this stuff works. From what I understand futures are about transferring risk? A wheat farmer will enter a contract so that he may sell at a fixed price, thus eliminating the risk of falling prices. He also waives any possible gains he might see if prices go up. The speculator is willing to risk a price drop but really wants to see the price go up so that he can profit. Is this the right way to think about it?