Before I continue with the strategies series, I feel that I should write more about these terms that are popping up in recent posts.
Imagine that we live during ancient times where we're not too different from our ape friends. Back then, there isn't anything like the currency system we have now. To procure goods, we will have to trade for it using scarce items like shells, precious jewels and gold.
How these traders get their goods (for e.g. chickens) is probably not very different from the present. They approach some farmers, find out what the farmers want then strike up a deal for an exchange. Bring back to their country and sell at a mark up.
Traders knew that the demand for chickens would be crazy high (not wrong since we have countless ways of preparing chicken lol), shrewd ones might manipulate the supply thus driving chicken prices up....