In the past, if someone said futures contract, you’d probably have drawn a blank look. That’s not the case any longer, especially since these were introduced in stocks and indices in the year 2000. Since then, `futures’ – as these contracts are known in stocks – are becoming increa...
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...
Commodity dynamics:The copper market is showing strength due to declining inventories, while the gold-silver ratio is in an accumulation phase. Gold price prediction:Sreible forecasts that gold futures could reach $3,000 in the next year. Silver undervaluation:Silver is believed to be undervalued ...
But not everyone in the futures market wants to exchange a product in the future. These people are futures investors or speculators, who seek to make money off of price changes in the contract itself. If the price of jet fuel rises, the futures contract itself becomes more valuable, and th...
CFD is short for Contract for Difference. These products enable traders to make a profit or loss based on the difference between the entry and exit prices of a trade, without taking ownership of the underlying assets. CFD's are popular in forex, stocks, indices and commodities. What are ...
Precious metal futures for gold and silver Stock index futures with underlying assets such as the S&P 500 Index Important The buyer of a futures contract must take possession of the underlying stocks or shares at the time of expiration and not before. Buyers of futures contracts may sell their...
A futures contract is a legal agreement to buy or sell a commodity asset, such as oil or gold, at a predetermined price at a specified time in the future. The futures market is used by investors and traders to track the fair value of financial assets sev
Put or call options based on crude or gold, for example, are traded on many futures exchanges. These contracts grant the option buyer the right, but not the obligation, to buy or sell a specific futures contract at a specific price on or before an expiration date. Exchange-traded funds (...
The buyer of the futures contract (the party with a long position) agrees on a fixed purchase price to buy the underlying commodity (wheat, gold or T-bills, for example) from the seller at the expiration of the contract. The seller of the futures contract (the party with a short positio...
Afutures contractis the agreement to buy an asset at a set price and amount at a future date. Futures contracts are used by businesses to hedge risks, and traders use futures to speculate on both the future of one commodity and the market in general. ...