Futures

Oil prices, unlike most other items, are not solely influenced by supply, demand, and market sentiment toward the physical product. Rather, price determination is dominated by supply, demand, and emotion toward oil futures contracts, which are frequently traded by speculators. Commodity market cyclical tendencies could potentially play an influence. Regardless of how the price is […]

Stock index futures, such as the S&P 500 E-mini Futures (ES), reflect expectations for a stock index’s price at a later date, based on dividends and interest rates. Index futures are two-party agreements that are considered a zero-sum game because when one party wins, the other loses, and there is no net wealth transfer. While

You can purchase a new contract to replace existing futures contract. Assume you purchased a futures contract to purchase 1000 shares of XYZ Company. You can buy another futures contract to sell 1000 shares of XYZ firm on the expiration date. Is it possible to trade futures on their expiration date? The last trading day

In a corn futures contract, who decides when delivery will take place: a. The delivery date is specified in the exchange. Corn futures are delivered in many ways. The holder of a short position must be willing to deliver the underlying commodity. A shipping certificate or a warehouse receipt are the delivery instruments for Grain

A grain futures contract is a legally binding agreement for the delivery of grain at a specified price in the future. A futures exchange standardizes the contracts in terms of quantity, quality, delivery time, and location. The only variation is the price. How do you interpret the price of a grain future? The most recent

Are there any tax advantages for futures traders that stock traders don’t get? They do, in fact. In this video, I speak with Dave Lerman, Director of Education at CME Group, about the tax advantages and efficiencies that futures traders enjoy. When compared to stocks and ETFs, futures trading provides significant tax benefits to traders.

It is possible to lose more than one’s original investment when trading futures because of the leverage applied. On the other hand, it is also feasible to make extremely big earnings. The greater risk is due to the form and method of how futures contracts are traded, not because the real product a trader is

E-mini Nasdaq futures trade on the CME Globex trading platform nearly 24 hours a day, starting at 6:00 p.m. All times are in U.S. Eastern Time (ET) until 5:00 p.m. The following afternoon, U.S. ET. Is the futures market now active? Each form of futures contract agricultural, energy, interest rate, equities, and so on has

Oil futures are a thrilling asset to trade, but don’t be fooled by their allure; they’re not for everyone. Before you go in, make sure you’re aware of the risks involved with trading these assets: One Contract Represents 1,000 Barrels of Oil With 1,000 barrels of crude represented by one contract, a $0.50 drop in

A futures contract’s limit up price is the highest daily price movement allowed. All futures contracts will be monitored by the exchange, which will instantly cease trading if the contract’s limit up price is reached. Distinct futures contracts will have different price restriction regulations, so certain areas of the market could be paused while other