1CHAPTER 34VALUING FUTURES AND FORWARD CONTRACTSA futures contract is a contract between two parties to exchange assets or servicesat a specified time in the future at a price agreed upon at the time of the con
We see a lot of dare-devil stunts shown on TV with a warning for users “Do not try this at home”. A few stunts are impossible or very difficult to perform, while a few could be attempted provided you have the right training, skill and guidance. Futures Contract, quite simply, is a...
There's a lively and liquid market for futures contracts. We explain what futures are and how futures trading works.
Notional value is the contract value of a financial instrument trading on an exchange. This value helps you perceive how much a trade is worth vs. how much you would pay for it right now. The notional value of a futures contract is calculated by multiplying the units in one contract by i...
Before buying an /MES contract, a trader may need to provide some cash to cover the initial margin requirement. It's possible to find the initial margin requirements in theFutures Tradersubtab under the mainTradetab. For example, if the initial margin is $1,320, that's how much is requi...
We can add another level of abstraction, however, and create afutures contractfor a stock index. Speculators can take positions with the resulting index futures contract on what direction the market-at-large will move. These speculators are buying or selling a number. ...
When looking ahead a few years instead of a few months, these funds hold up. Jeff ReevesApril 25, 2025 Short-Term Investments for Income Have short-term liquidity needs? These cash-like investment options can deliver on that. Tony DongApril 24, 2025 ...
The LME offers an American style options contract on Lead Futures. Options are also a derivative instrument that employs leverage to trade commodities. As with futures, options have an expiration date. However, options also have a strike price, which is the price at which the contract is execut...
Dow futures markets make it much simpler to short-sell the broader stock market than individual stocks. Futures Trading Basics A futures contract is a legally binding agreement between two parties in which they agree to buy or sell an underlying asset at a predetermined price in the future. The...
A BOBL futures contract is a standardized futures contract based on a basket of medium-term debt issued by the German government.