Absolute Futures

The weirdest things ever traded on a futures exchange

The weirdest things ever traded on a futures exchange

We, as expert SEO and high-end copywriters, are always on the lookout for new and interesting topics that can captivate the reader’s attention. One such topic that has piqued our interest is the weirdest things ever traded on a futures exchange. While futures exchanges typically deal in commodities such as gold and oil, some exchanges have seen the trading of unusual items like movie box office receipts, weather, and even political events.

In this article, we will explore the strangest and most unusual things that have ever been traded on a futures exchange. We will delve into the details of each item, including its history, how it came to be traded on a futures exchange, and its impact on the market. So, without further ado, let’s get started.

  1. Celebrity Endorsements

The concept of trading celebrity endorsements may seem strange, but it has been happening for years. Companies will purchase future contracts on a particular celebrity’s endorsement, hoping that their popularity will increase the value of the contract. For example, in 2013, Fantex Brokerage Services launched a trading platform where investors could buy and sell shares tied to the future earnings of NFL player Arian Foster. While this may seem like a niche market, it has the potential to become more widespread in the future.

  1. Political Events

Political events are another unusual item that has been traded on futures exchanges. In 1988, the Iowa Electronic Markets (IEM) began trading futures contracts on U.S. presidential elections. Investors could purchase contracts on the winning candidate and potentially make a profit. The IEM has been incredibly accurate in predicting the outcome of presidential elections, leading to its reputation as a reliable predictor of political events.

  1. Weather

Weather futures are a type of futures contract that allow investors to speculate on the future price of weather-related variables such as temperature, rainfall, and snowfall. While it may seem odd to trade on the weather, it has become a popular way for investors to hedge against weather-related risks, such as droughts, floods, and hurricanes. In fact, the Chicago Mercantile Exchange (CME) offers futures contracts on heating degree days, cooling degree days, and precipitation.

  1. Box Office Receipts

Movie box office receipts may not be the first thing that comes to mind when you think of futures trading, but it has happened in the past. In the late 1990s, the Hollywood Stock Exchange (HSX) began offering futures contracts on the opening weekend box office receipts of movies. Traders could speculate on the success of a particular movie and potentially profit from its success or failure.

  1. Christmas Trees

Believe it or not, Christmas trees have been traded on futures exchanges. In the 1970s, the New York Mercantile Exchange (NYMEX) began trading futures contracts on Christmas trees, specifically the price of balsam firs. While this market never really took off, it goes to show that almost anything can be traded on a futures exchange.

  1. Terrorism Futures In 2003, the Defense Advanced Research Projects Agency (DARPA) proposed a market for futures contracts on political events such as assassinations and terrorist attacks. The idea was met with public backlash and was eventually shut down, but it goes to show just how far some futures exchanges are willing to go in the pursuit of profit.
  2. Sports Teams Futures contracts on sports teams are another unusual item that has been traded on exchanges. For example, in 2018, the CME Group launched futures contracts on the value of Major League Baseball (MLB) teams. Investors could buy and sell contracts tied to the estimated value of an MLB team, with potential profits based on the team’s success and revenue. This highlights how the world of futures trading is constantly evolving and expanding to include more and more diverse assets.

In conclusion, futures exchanges have seen some strange and unusual items being traded over the years. From celebrity endorsements to Christmas trees, almost anything can become a futures contract if there is demand for it. While these markets may seem odd, they can provide investors with unique opportunities to hedge against risk and potentially make a profit. We hope you enjoyed this glimpse into the weirdest things ever traded on a futures exchange.