Futures

To grasp the fundamentals of silver futures trading, consider the case of a silver medal maker who has been awarded the contract to supply silver medals for an upcoming sporting event. In order to meet the deadline, the factory will need 1,000 ounces of silver in six months. He looks up silver pricing and discovers […]

The cash value of the underlying asset is used to calculate the value of a futures contract. A trader can purchase or sell a futures contract with a significantly lesser amount, known as the initial margin, even though the contract’s value is quite large. What will the cost of future contracts be? How much does

Futures are no riskier than other types of assets such as stocks, bonds, or currencies in and of themselves. This is because the values of futures, whether they are futures on stocks, bonds, or currencies, are determined by the prices of the underlying assets. Do futures carry more risk than options? Futures and options are

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

Most people who follow the financial markets are aware that events in Asia and Europe can have an impact on the US market. How many times have you awoken to CNBC or Bloomberg reporting that European markets are down 2%, that futures are pointing to a weaker open, and that markets are trading below fair

The Emini (also known as the E-mini, ES, or Mini) is a futures contract that follows the S&P 500 stock market index. The Chicago Mercantile Exchange (CME) uses their Globex electronic trading platform to trade it. The contract symbol ES is traded for 23 1/2 hours a day, 5 days a week. Emini contracts can

Futures prices follow the same rules as cash bond pricing. The offered price will be a percentage of a bond’s par or maturity value, expressed in halves of 32nds. A $100,000 face value bond would cost $133,515.625 if the 30-year Treasury futures were trading at 133-165. 16-1/2 32nds, or 0.515625, is shown by the 165

Futures trading allows investors to speculate or hedge on the price movement of a securities, commodity, or financial instrument. Traders do this by purchasing a futures contract, which is a legally binding agreement to buy or sell an asset at a predetermined price at a future date. Grain growers could sell their wheat for forward

If you assume you’ll need to employ a four-tick stop loss (the stop loss is four ticks distant from the entry price), the minimum you should risk on a trade in this market is $50, or four times $12.50. The minimum account balance, according to the 1% rule, should be at least $5,000 and preferably

Futures trading allows investors to speculate or hedge on the price movement of a securities, commodity, or financial instrument. Traders do this by purchasing a futures contract, which is a legally binding agreement to buy or sell an asset at a predetermined price at a future date. Grain growers could sell their wheat for forward