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  • My crop will  grow on 1st  March,  but I am afraid that price may fall down.
  • Let's meet Shyam,a farmer from Rampur and Ram, a Trader who want to purchase Wheat
  • Seeing the current market scene, Wheat price is expected to go up
  • 1st  Jan Wheat Price= 10/kg
  • Price will go Down, I can save my loses. 
  • Let's make a deal On, 1st March I will sell you 1000 kg wheat at 10/kg
  • Ok
  • Price will go up.  I am buying Cheaper
  • 1st  Jan Wheat Price= 10/kg
  • Situation 1
  • ohh I wish I hadn't made the deal 
  • Now, I can sell wheat in market at 12/kg and earn profit of Rs. 2000
  • 1st  March Wheat Price= 12/kg
  • Situation 2
  • I prevented my loss of Rs. 2,000
  • Ohh !!!!!!!!!!! I had a loss of 2,000
  • 1st  March Wheat Price= 8/kg
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