Investment

A fixed price margin of $12,375 is required for a whole silver futures transaction. To take one position in a whole silver futures contract, one just requires a margin of $12,375 (instead of the actual cost of $78,500 in the above example). What is the procedure for purchasing silver futures? Silver futures are standardized, exchange-traded […]

Is TD Ameritrade a good place to trade oil futures? Micro futures, such as Micro WTI Crude Oil futures, Micro Bitcoin futures, E-mini Index futures, and others, can help you diversify your portfolio. Is it possible to trade commodity futures with TD Ameritrade? You can trade commodities, indexes, and Treasury bonds, among other things. Get

Speculators offset the vast majority of futures trades before final expiration. Some traders may choose to let their holdings expire, which, in the case of bitcoin futures, would result in a cash settlement based on the Bitcoin Reference Rate (BRR). When do futures contracts expire? Contracts for the future You can buy another futures contract

Gasoline futures are standardized, exchange-traded contracts in which the contract buyer agrees to accept delivery of a particular quantity of gasoline (e.g. 50 kiloliters) from the seller at a predetermined price on a future delivery date from the seller. Is there a futures market for gasoline? The Chicago Mercantile Exchange (CME) lists RBOB gasoline futures

Capital gains on equities held for less than a year are classified as short-term capital gains and are taxed at the appropriate rate for your tax bracket. Long-term capital gains are capped at 15%, which benefits people with higher salaries significantly. Is the IRS aware of futures trades? The way you report capital gains from

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

Futures Price = Spot Price *(1+Rf (x/365)) d, according to the futures pricing formula. The basis, or simply the spread, is the difference between futures and spot. The “Theoretical fair value” of a futures contract is determined by the pricing formula. The’market value’ of futures is the price at which they are traded on the

The iPath S&amp An exchange traded note (ETN) is similar to an exchange traded fund (ETF), but instead of owning a basket of equities, bonds, or commodities, it is a debt instrument with a maturity date. VXX is intended to mirror the value of CBOE Volatility Index futures contracts, which is a measure of current

Futures provide a higher level of liquidity after-hours than stocks traded on ECNs, in addition to providing market access almost 24 hours a day. Because of the increased liquidity, tighter spreads are possible, which is important because the larger the spread, the more a transaction must move in your favor just to break even. What

In a forward transaction, both the seller and the buyer of forward contracts are bound to perform their end of the contract at maturity. Forward Contract Example Assume Ben’s coffee shop currently buys coffee beans from his supplier, CoffeeCo, for $4 per pound. Ben’s is able to retain strong margins on the sale of coffee