A futures contract is a financial derivative representing the exchange of a commodity at a specific price at a specific date. Each futures contract has specific details, including the type of asset, contract size (the amount of the asset traded per contract), the price per unit, the contract...
Green, Kathleen
The term "contract unit" may also be used in reference to a forward contract. Like a futures contract, a forward contract also grants the right to purchase or sell an asset in thefuture. Forwards, however, are not standardized. Rather, the transacting parties draw up contract terms tailored...
Learning the mechanics of inverse Futures contracts in crypto is like learning the rules of a new board game. At first glance, it might seem complex, but once you understand the basics, it all makes sense. Let’s say you’re dealing with a Bitcoin inverse Futures contract. ...
Scalping futures is a trading strategy where traders look to take small profits on each trade by buying and selling contracts quickly. This strategy can be used in any market, including the futures markets. To successfully scalp futures, traders need to
There's a lively and liquid market for futures contracts. We explain what futures are and how futures trading works.
In contrast, a perpetual contract (which is a type of futures contract) lacks a fixed settlement time and an expiration date. As long as the maintenance margin is sufficient, traders can hold their long or short positions perpetually. The minimal amount of collateral a user must have in ...
A cash market transaction of this type is very similar to a futures contract. However, there are a couple of important differences. First, cash forward contracts involve is a privately negotiated transaction. This means that the buyer and the seller are willing to bear in mind the degree of ...
A BOBL futures contract is a standardizedfutures contractbased on a basket of medium-term debt issued by the German Federal Government. BOBL is an acronym for a German term, Bundesobligation, which translates to English as federal government bond. BOBL futures contracts trade under the symbol FGB...
A gold option is similar in some ways to a goldfutures contractin that the price, the expiration date, and the dollar amount are preset for both. However, with a futures contract, there is an obligation to uphold the agreement and either buy or sell the agreed-upon quantity of gold at ...