A futures contract is an agreement to either buy or sell an asset on a publicly traded exchange. The contract specifies when the seller will deliver the asset and what the price will be. The underlying asset of a futures contract is commonly either a commodity, stock, bond, or currency. S...
Futures margin allows traders to control more notional value with a small up-front deposit, but margin can magnify losses as well as profits. What is a futures contract? When you buy or sell a futures contract, you enter a legal agreement that spells out standardized specifics and obligations...
The word "contract" is used because a futures contract requires delivery of the commodity in a stated month in the future unless the contract is liquidated before it expires. The buyer of the futures contract (the party with a long position) agrees on a fixed purchase price to buy the ...
What is a futures contract, and how does it work? Before we get to know what are futures, we must understand the concept of derivatives. A derivative is a contract based on the‘derived value’of an underlying asset. Definition of a Futures Contract A futures contract gives the buyer (or...
A futures contract is an agreement to buy or sell an asset at a specified price and time in the. These agreements are a common type of derivative, which is to say that they themselves are not assets, but their value is based on the rights that they may exercise in the future over an...
A futures contract is an agreement to trade a commodity, currency, or stock at a set price, amount, and date. Businesses use futures contracts to hedge risk, and traders may use them to place speculative bets. Futures can be traded with over 30x leverage and are risky because of that le...
trading opportunities. Secondly, energy futures allow traders to gain exposure to the price movements of commodities that have significant impact on the global economy. Additionally, energy futures trading on TOS offers leverage, enabling traders to control larger contract sizes with a smaller capital ...
A futures option is a type of security that grants the trader the right to buy or sell a futures contract at a specific price by a specific date. There are two types of futures options: call options and put options. Call options give the owner the right to buy a futures contract, Put...
A futures contract on one financial instrument to protect a position in a different financial instrument is known as what?Hedge:This question relates to the concept of a futures contract, which is legal agreement to buy or sell a commodity at a ...
A BOBL futures contract is a standardized futures contract based on a basket of medium-term debt issued by the German government.