126 – Feast of the Stars 7
Humans cannot know the future to come, and thus have imperfections and uncertainties.
And, in the midst of such uncertainty, humans with the nature of seeking stability come up with an interesting idea.
A trading method devised to minimize future losses and secure stability.
It is rice in the East
Corn in the West.
The most basic and therefore the most important food industry..
That is, from agriculture.
Agriculture is the oldest and most indispensable basic industry in human history.
However.. apart from its long history, agriculture was an industry that was essential for survival and at the same time had great instability beyond imagination.
Farming requires fertile land, crops to be planted on the land, and labor to support it.
But.. no matter how good the soil is, no matter how good the seeds are. Even if there are sincere and strong workers.
After all, the most important factor that determines farming is the sky.
in other words. The name of the weather rested on a fate no one could be sure of.
Of course, the concept of an average climate existed, and because of this, large cities easily developed in areas where farming was successful.
But… even that average climate didn’t always go so smoothly when you looked inside.
If the temperature is only slightly higher or lower than usual, if there is no rain, or if there is too much rain, everything that has been worked hard for a year can disappear in a single moment.
Even if one day out of 365 days in a year goes wrong, it will be irreparably damaged, and it has a great gambling nature that does not know when, how or how it will bounce.
In fact, there have been countless cases in history where a sudden climate change ruined farming and the aftermath led to the extreme case of national destruction.
In addition, the fact that not only bad years with poor yields, but also good years with excessively high yields can cause economic damage by lowering grain prices from the perspective of those engaged in agriculture, further increasing the uncertainty of agriculture. has been a factor in growing
Because of this, in order to somehow resolve this uncertainty, each country has made endless efforts, such as developing something called astronomy and creating a culture such as religion.
However, in spite of these efforts, it is still far from completely solving the uncertainty of agriculture even today, when the weather can be predicted using advanced technology.
Agriculture is an essential, but by no means formidable, risky industry.
and..
In this regard, traders develop a trading method to minimize this uncertainty.
The method itself was simple.
For example, here
Let’s say there is a farmer who does farming and a merchant who buys and transports them to the market to sell.
A farmer who is growing crops is not sure how this year’s farming will go, but he wants to make profits as stable as possible.
On the other hand, in the case of merchants, they want to make the most profit by purchasing crops and selling them in the market.
In this situation, the merchant makes an offer to the farmer.
An offer to buy all the crops that the farmer will harvest from his field this year, at this moment, at a slightly lower average market price.
In this case, farmers will be able to secure stability in that they will be able to earn a certain profit regardless of this year’s harvest.
Even if there is a problem and the harvest is not good, he has already received the money he deserves, so he can reduce his risk to a minimum.
On the other hand, the merchant may suffer a loss if the harvest is not good, but instead, if the harvest is good, he can take the profit as much as the profit.
Farmers give up future gains in exchange for stability, whereas merchants can expect huge gains instead of taking risks.
A way to make this industry named agriculture more stable.
This transaction law, which aims to achieve maximum stability for one side and maximum profit for the other through contract and credit, was actually a method that occupied a very large proportion of modern agriculture.
Over time, all the resources in the world, not just agriculture. As it expands its scope to various production industries such as oil and iron ore fishing, it grows into a huge financial market.
and now…
In this way, people call the trading law originally created for the purpose of securing stability as the following name.
futures trading
The trading market, which started for stability, but ironically contains terrible risks enough to let many modern investors know that there is a hell under the hell.
As mentioned above, this was started to give stability to those who produce resources, including agriculture, but the concept of investment in it. It transforms into a demonic spectacle that drops.
Originally, it was a market created to pursue profit while taking risks, and at the same time, the time of shipment and sale of products was set, so the so-called impossible characteristic of the futures market made it more volatile than the stock market.
Unlike stocks that can be judged to have hit the jackpot just by going up 40-60%, in the case of futures, you can get a profit of 400-600%. Being able to climb into debt was a gift.
Futures trading that literally shows the extreme of high-risk, high-return
however..
From nob le mt l. com
Now I don’t have to worry too much about the risks that such futures trading brings.
All risks are due to the uncertainty of the future.
As a reader of the original work, knowing the future trend very well, I was able to minimize the risk of futures trading, which was actually proven through the enormous wealth of thousands of talents earned as a paladin in the past.
Despite the lack of capital at the time, he succeeded in acquiring financial power that was recognized in the city.
And now I…
He was the heir of Bohemia, but as a person who actually moved the heretical alliance, he was able to manage an incomparable amount of money.
Bohemia’s already abundant economic power and support from allies.
In addition, if the power of the Dragona Empire is added.
If you move it and proceed with the ‘gift’, the benefits you will get will be truly enormous.
‘If you can get your hands on that amount of money, it’s also possible to reverse an unfavorable situation. Even though it’s quiet right now, there will be people who can chew on the situation if they support me well.’
Of course, there was no need to tell Dragona the emperor about such a detailed plan straight away.
Even if he said this in the first place, it was unknown whether the emperor, a man of this era, would understand it well, and there was a risk of giving a rather hostile impression if he did so.
It would be nice if we could draw out full support, but if we brushed our mouths off excessively greedily for no reason, we would be in trouble.
In addition, there was an experience of being kicked out of the Holy Knights in the past for making money with strange things, and above all, this was also a kind of trade secret, so it was necessary to keep it to some extent.
That’s how I induced the so-called ‘support’ to enter into a practical futures transaction with the Dragona Empire,
Estelle relayed my words to the emperor without knowing the details.
Of course, she accepted my plan without much doubt as it was a story that was sufficiently credible in itself, including the content of attracting foreign countries, and since she was the emperor who originally decided to support.
At least, that’s what I see.