racts, valued at some $6.3 trillion each year. Eurodollar futures are even more heavily traded in terms of dollar amount but are second highest in terms of volume of trades. The primary purpose of futures contracts remains to shift risks from those less willing to bear them to those willing to assume them for a price with the hope of a profit. Futures contracts are a way of hedging stock investments and may increase the willingness of investors to put their savings into securities rather than other kinds of investments (Office of Technology Assessment, Electronic Bulls and Bears, 1990, 69-71).
Foreign currency exchange and markets for government debt securitie
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