definition for: #marijuanafutures

Marijuana traded on a futures exchange, like corn or wheat. A normal hedging tool to help marijuana cultivators and buyers.

There is a real need for a tool to hedge prices in marijuana. The market in marijuana could very well become inundated with supply which will drive the price down. Also, high volatility, i.e., sudden spikes and collapse of price, can damage the viability of many businesses. Futures trading is a tool employed by many large and small, enterprises to manage risk, ensure longer term viability and demonstrate sound financial planning.