Hi all, So I dont want to ramble off on one, so i`ll try keep it short and would very much appreciate some experienced understanding to convey it over in layman` terms! To keep this short, 1)How does futures trading effect overall economy when its purely punters buying and selling from one another, speculating over price at a future date BUT all contracts EXPIRE meaning they`re holding pieces of paper, nothing tangible or really worth anything or nor any intention of receiving any goods? I find this confusing? 2)This maybe ridiculous, but I simply cannot understand the concept of actually buying a contract, lets say, in the wheat market; if you hold that to the expiry/delivery date will that person PHYSICALLY receive 5,000 bushels to a warehouse? If so, does this apply to futures contracts, because from what I understand people `hedge` by buying a futures contract today, to mitigate risk of price fluctuations in the future (to work costings out, as a business more accurately, etc) BUT, from a futures contract, on expiry will they actually PHYSICALLY receive the goods on the specified date? 3) If most people are speculating all the time and people are purchasing contracts but selling them on, do people get left (probably really daft question) with loads of contracts and having to accept delivery of the goods!? (lol) and if not, then how is this productive for the farmers of wheat when when the buyers and sellers are just exchanging money and they aren't seeing a penny :s? Sorry if my logic is way out of wack! I hope you can respect my lack of intelligence when touching on this topic and would really appreciate someone explaining to me very simply whats the crack! Thanks in advance!