The dealing in contracts for future delivery of exchange arises from two broad classes of operations. Bankers who buy and remit to their foreign correspondents large amounts of exchange, including both acceptance and payment commercial long bills, frequently sell their own demand drafts for future delivery, trusting that the payments under rebate on payment commercial bills will be sufficient to meet them. "Not infrequently good commercial payment bills can be bought at such a price and bankers' futures sold against them at such a price that there is a substantial profit to be made.' Bankers' futures are sold also not against remittances of commercial bills but against exporters' futures. An exporter who desires to quote a price to a foreign customer on merchandise to be shipped three months hence must know what exchange will cost him at that time. The banker will quote him a rate somewhat higher than he calculates he may be able to sell his draft at that future date. The exporter knows exactly what he will have to pay for exchange when he needs it; the banker takes a chance on the future condition of the exchange market.