Futures

Futures and options are similar trading instruments that allow investors to make money while also hedging their present investments. A buyer has the right, but not the responsibility, to buy (or sell) an asset at a defined price at any point throughout the contract’s duration. Unless the holder’s position is closed prior to expiration, a […]

April 22nd – Gold Futures (ZGJ2) Is it possible to buy gold futures? Gold futures are standardized, exchange-traded contracts in which the contract buyer promises to acquire a particular quantity of gold from the seller at a predetermined price on a future delivery date. Companies in the precious metals business can use gold futures to

Futures are a sort of derivative contract in which the buyer and seller agree to buy or sell a specified commodity asset or security at a predetermined price at a future date. Futures contracts, or simply “futures,” are traded on futures exchanges such as the CME Group and require a futures-approved brokerage account. A futures

Let’s go back to the forwards market scenario we used earlier (chapter 1). In the example given, ABC Jewelers agrees to buy 15 kilograms of gold from XYZ Gold Dealers for Rs.2450/- per gram in three months. We can see that any change in the gold price will have a negative impact on ABC or

Index futures are also used by investors and investment managers to protect their stock investments from losses. Why do individuals invest in index funds? A futures contract on a sectoral or market-wide index is known as an index future. On the NSE, for example, you can trade futures on the Nifty (a market-wide index) as

When a margin account makes more than three day transactions in a rolling 5-business-day period, it is flagged as PDT. PDT margin accounts that fall below $25,000 at the conclusion of a trading day will receive an Equity Maintenance (EM) call the following trading day. If your securities account balance falls below $25,000, you may

Clearing houses handle the clearing and settlement of futures contracts traded on exchanges. They serve as a neutral intermediary between buyers and sellers, ensuring the soundness and integrity of all transactions. What is the procedure for clearing futures contracts? Every futures contract traded on an exchange is cleared centrally. This means that when a futures

In tax law, a regulated futures contract is one in which the amount necessary to be deposited and the amount that may be withdrawn is determined by daily market conditions. A qualified board of exchange’s rules usually apply to a regulated futures contract. They are also bound by the rules of any domestic board of

CFDs are not futures contracts in and of themselves, but they allow investors to trade the price movements of futures. CFDs do not have pre-determined expiration dates and trade like other assets with buy and sell prices. CFDs or futures: which is better? CFDs and futures are two different ways to trade a variety of

Corn futures are traded on the Chicago Board of Trade (CBOT), the New York Stock Exchange (NYSE Euronext), and the Tokyo Grain Exchange (TGE). Corn futures prices on the CBOT are listed in dollars and cents per bushel and are traded in 5000 bushel lots (127 metric tons). Corn futures on Euronext are traded in