Add training workflow, datasets, and runbook

training_data/curated/text/023741bcef7c6e8c8d5074181674870e23842792b4a275a3c21b7cb17492125b.txt

@@ -0,0 +1,37 @@
+Chapter 34: Futures and Futures Options 655 
+However, the point is that the businessman is able to substantially reduce the cur­
+rency risk, since in six months there could be a large change in the relationship 
+between the U.S. dollar and the Swiss franc. While his hedge might not eliminate 
+every bit of the risk, it will certainly get rid of a very large portion of it. 
+SPECULATING 
+While the hedgers provide the economic function of futures, speculators provide the 
+liquidity. The attraction for speculators is leverage. One is able to trade futures with 
+very little margin. Thus, large percentages of profits and losses are possible. 
+Example: A futures contract on cotton is for 50,000 pounds of cotton. Assume the 
+March cotton future is trading at 60 (that is, 60 cents per pound). Thus, one is con­
+trolling $30,000 worth of cotton by owning this contract ($0.60 per pound x 50,000 
+pounds). However, assume the exchange minimum margin is $1,500. That is, one has 
+to initially have only $1,500 to trade this contract. This means that one can trade cot­
+ton on 5% margin ($1,500/$30,000 = 5%). 
+What is the profit or risk potential here? A one-cent move in cotton, from 60 to 
+61, would generate a profit of $500. One can always determine what a one-cent move 
+is worth as long as he knows the contract size. For cotton, the size is 50,000 pounds, 
+so a one-cent move is 0.01 x 50,000 = $500. 
+Consequently, if cotton were to fall three cents, from 60 to 57, this speculator 
+would lose 3 x $500, or $1,500 - his entire initial investment. Alternatively, a 3-cent 
+move to the upside would generate a profit of $1,500, a 100% profit. 
+This example clearly demonstrates the large risks and rewards facing a specula­
+tor in futures contracts. Certain brokerage firms may require the speculator to place 
+more initial margin than the exchange minimum. Usually, the most active customers 
+who have a sufficient net worth are allowed to trade at the exchange minimum mar­
+gins; other customers may have to put up two or three times as much initial margin 
+in order to trade. This still allows for a lot of leverage, but not as much as the specu­
+lator has who is trading with exchange minimum margins. Initial margin require­
+ments can be in the form of cash or Treasury bills. Obviously, if one uses Treasury 
+bills to satisfy his initial margin requirements, he can be earning interest on that 
+money while it serves as collateral for his initial margin requirements. If he uses cash 
+for the initial requirement, he will not earn interest. (Note: Some large customers do 
+earn credit on the cash used for margin requirements in their futures accounts, but 
+most customers do not.) 
+A speculator will also be required to keep his account current daily through the 
+use of maintenance mar~is account is marked to market daily, so unrealized