Afutures contractis an agreement entered into by two parties. One party agrees to buy, and the other agrees to sell an underlying asset at a predetermined price on a specified date. On the futures contract's settlement date, the seller must deliver the asset to the buyer. A futures contrac...
The roll involves selling the front-month contract already held to buy a similar contract but with longer time to maturity. Depending whether the futures is cash vs. physical settlement may influence the roll strategy. Why Roll? Rolling futures contracts refers to extending the expiration or matu...
Professional skills Information superiority, specific technology and theory, diligent and conscientious and honest code of business for Party A to buy and sell domestic futures contracts. 4. during the period of entrustment, Party A has the right to inquire about the paction of the account at any...
A futures contract—an agreement to buy or sell something at a specific price at some point in the future—lets traders speculate on the direction of a range of products, from the S&P 500®index (SPX) to commodities like gold or corn. Futures can help traders manage risks and diversify ...
Futures contract is an agreement to buy or sell an asset at a future date at an agreed-upon price. These agreements typically trade on an exchange.
Buy (Long) Futures Trade In this example, we are going to look at a long trade. This means that you think the value of the futures contract will increase. You want to trade the future value of Facebook stocks – which are currently priced at $300 per share ...
A futures contract is an agreement between two parties to buy or sell an asset at a future date at a specific price. Breaking it down, one party agrees to buy a particular commodity at a specific price at a later date, while a second party (a “counterparty”) agrees to sell the exac...
Futures Options Basis can be assumed to diminish to zero at contract maturity at a constant rate, based on monthly time intervals Use in basis calculation: • Period between investment date (31 January) and contract maturity date (31 March) (two months) • Per...
Futures contract or forward contract A futures contract or forward contract is an agreement used in futures or commodities trading. Under a futures contract, someone agrees to buy or sell a commodity or asset for a specified price, at a specified time. The buyer is basically putting themselves ...
There's a lively and liquid market for futures contracts. We explain what futures are and how futures trading works.