Futures

A futures contract is a legally binding agreement to buy or sell a certain commodity, asset, or security at a defined price at a future date. To simplify trading on a futures exchange, futures contracts are standardized for quality and quantity. What is the purpose of a futures contract? Futures Contracts: An Overview Futures are […]

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

Sunday through Friday, electronic trading of crude oil futures is performed on the CME Globex trading platform from 6:00 p.m. U.S. to 5:00 p.m. U.S. ET. Contracts for crude oil futures are traded every calendar month, from January to December. Is oil traded around the clock? Before executing a futures trade, it’s critical to understand

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

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

What Are Natural Gas Futures and How Do They Work? A natural gas future, like all commodities, is a contract that binds the buyer to buy a certain amount of natural gas at a specified price and date in the future. The 15th of the following month is chosen as the delivery date. What are

The price of a commodity’s futures contract is determined by its current spot price plus the cost of carry for the time between delivery and delivery. The cost of carry refers to the cost of storing a commodity, which includes interest, insurance, and other ancillary costs. What factors influence commodity pricing? Commodity prices, like stock

A futures contract is exactly what it sounds like. It’s a financial product, also known as a derivative, that involves two parties agreeing to trade a securities or commodity at a preset price at a future date. It is a contract for a future transaction, which we simply refer to as a contract “Future prospects.”

A specific expiration date is included in all futures contracts. You have the option of liquidating or rolling forward your position before the expiration date. If you keep the contract until it expires, it will be settled. In this brief film, you’ll learn more. To trade futures on Etrade, you’ll need the following items. You

You plan to invest $90,000 in one oil futures contract (1,000 barrels multiplied by $90 per barrel). You’d open a new account for the oil futures contract and deduct the cost of the contract from your deposit. You could, for example, call the account Oil Futures Contract #1 and debit it for $90,000. You would