Futures

As the price of the commodity falls, a short position will profit. To finish a short position, tell your broker to buy the identical contract again, closing the trade; then you’re done. Is it possible to short futures? You can trade as much long or short as you like in futures as long as you […]

The base market contract for S&P 500 futures trading is the standard-sized contract. It is valued by increasing the value of the S&P 500 by $250. For example, if the S&P 500 is at 2,500, a futures contract’s market value is 2,500 x $250 (or $625,000). What is the best way to read a futures

E-mini S&P 500 futures are traded on the Chicago Mercantile Exchange (CME) and allow traders to obtain exposure to the S&P 500 index, which is commonly regarded as a barometer of the US stock market. E-mini S&P 500 futures, which represent one-fifth of the conventional S&P 500 futures contract, have been a success since their

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 hedge their gold price risk on a planned future purchase or sale of

Feeder Cattle futures are standardized, exchange-traded contracts in which the contract buyer agrees to accept delivery of a particular number of feeder cattle (e.g. 50000 pounds) from the seller at a predetermined price on a future delivery date from the seller. What is the market for feeder cattle? Feeder cattle, also known as store cattle

Lumber prices have risen again in the United States over the previous month. Since the start of the COVID-19 pandemic, the price of lumber has been volatile, sharply plunging and unexpectedly soaring during the last two years. Despite a brief drop in pricing in the new year, lumber prices have risen steadily throughout February, reaching

When does the futures market start and stop trading? From 6 p.m. EST Sunday until 5 p.m. Friday, the futures market is open nearly 24 hours a day. There is a 5 p.m. to 6 p.m. break, and some markets have additional breaks, but traders can normally find a market to trade at any time

Individual equities or an index, such as the S&P 500, can be used to purchase stock futures. A futures contract buyer is not required to pay the entire contract price up front. An initial margin, which is a proportion of the price, is paid. An oil futures contract, for example, is for 1,000 barrels of

Futures are significant tools for hedging and managing various types of risk. Foreign-trade companies utilize futures to manage foreign exchange risk, interest rate risk (by locking in a rate in expectation of a rate drop if they have a large investment to make), and price risk (by locking in prices of commodities such as oil,

Futures trading can indeed make you wealthy. While this is not to say that all futures traders are profitable or make money, futures are diverse and valuable assets that can be of tremendous assistance to many traders. Regardless of the security you trade, you can’t avoid the fact that the outcome of your trade is