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Consider an investor with limited resources contacts several owners each of a fruit press. The investor speculates that there will be a good market for oranges at the end of the year. He offers to pay the owners of the fruit press 100.00 to use their press in the future. They don’t know whether the orange market will be a good one or a bad one.

If it is a bad one, no fruit farmer will use their presses. If it is a good one, then the presses will be used. But the press owners don’t know. Neither does the investor, but he bets that they will be needed. Some of the press operators take the investors money, and a contract is made up to use the press if the investor wants to use it. The press owner can’t rent out the presses to others.

When the end of the harvest comes around, the harvest is very poor. No one needs the press. So the investor loses his money. The farmers didn’t lose any money other than the cost to run the orchard but didn’t make any either because their harvest was poor. The press owners made money by the contract with the investor, but not anymore.

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