Lumber futures are financial derivatives that are traded with leveraged softwood market exposure. Hedgers and speculators alike are trading lumber futures to manage risk or speculating through price fluctuations. Lumber futures market explained. Lumbers are also known as timber.
Why are hedgers trading lumber futures?
Hedgers and speculators alike are trading lumber futures to manage risk or speculating through price fluctuations. Lumber futures market explained. Lumbers are also known as timber. Lumber is the type of wood that has been cut into standard beams and planks.
Why are lumber futures sized at a single truckload?
Additionally, Lumber futures are sized at a single truckload to enable more tailored risk management strategies. Manage risk to Chicago-delivered lumber with a contract built to reflect prices at this key location, one truck load at a time.
Will lumber futures trading volume quadruple?
A contract for a quarter the amount of lumber, in theory, should quadruple trading volume. But Dean said that is likely just the baseline, and predicted volumes could increase by eight or 10 times "as more and more lumber futures observers become confident lumber futures traders."
