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<blockquote data-quote="Craig-TX" data-source="post: 49376" data-attributes="member: 39"><p>Texan and csmfutures each used a two key word but it's important to know and understand the difference between them because the difference is enormous. Cattle in the pasture are an <em>investment</em> that will hopefully (and usually) give a return. The potential return is smaller but so is the risk. Holding a position in the futures markets is <em>speculating</em>, even if it's for hedging purposes. The potential return is much greater but the risk of loosing is greater still. Buying a hedge position is just like paying an insurance premium – you hope you never need it. I don't play the futures markets because I'm conservative and don't take long positions in stockers. Not knocking it, just pointing out that the difference between investing and speculating is not to be taken lightly.</p><p></p><p>Craig-TX</p></blockquote><p></p>
[QUOTE="Craig-TX, post: 49376, member: 39"] Texan and csmfutures each used a two key word but it’s important to know and understand the difference between them because the difference is enormous. Cattle in the pasture are an [i]investment[/i] that will hopefully (and usually) give a return. The potential return is smaller but so is the risk. Holding a position in the futures markets is [i]speculating[/i], even if it’s for hedging purposes. The potential return is much greater but the risk of loosing is greater still. Buying a hedge position is just like paying an insurance premium – you hope you never need it. I don’t play the futures markets because I’m conservative and don’t take long positions in stockers. Not knocking it, just pointing out that the difference between investing and speculating is not to be taken lightly. Craig-TX [/QUOTE]
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