Identify possible benefits to the firm in using the futures markets.

1. Hedging: Futures contracts allow firms to hedge against the risk of price fluctuations on certain commodities or currencies. By buying a futures contract, companies can lock in future prices for their products and protect themselves from potential losses due to market volatility.

2. Price Discovery: The futures markets provide an invaluable resource for firms when it comes to understanding the direction of commodity and currency markets, making them more nimble and better prepared for market conditions.

3. Speculation: By speculating on the direction of markets through futures contracts, firms can capitalize on opportunities that may otherwise be impossible with other investments such as stocks and bonds.

4. Liquidity: Futures markets are highly liquid and offer investors a wide variety of products to trade quickly and efficiently at competitive rates; this reduces transaction costs and makes it easier to enter or exit positions as needed.