For questions relating to futures contracts.

learn more… | top users | synonyms

0
votes
1answer
24 views

Future price == strike price in the future contract?

Assume a future contract specifies that the holder of the contract will need to buy corn from XYZ farm at £100 per tonne, 1 tonne. So total deal value when realizing this contract is £100. We all ...
0
votes
3answers
26 views

Why is the future quote lower than the underlying?

I guess this is a simple one for experts: Looking now (12noon CET Nov 7, 2014) at the DAX ^GDAXI on yahoo finance, it says S = 9.361. The Future FDAXM5.EX quotes F = 9.388. What is the exact ...
0
votes
0answers
22 views

Getting historical data and low-latency trading for futures

I am experimenting with futures and computers, and I was looking for a source for free (or almost free) historical data, and low-latency trading access, in the futures market. The tricky part is ...
1
vote
1answer
70 views

Profits vs. losses from stocks, options, and futures: separate, or combined?

Are stocks, options, and futures all considered part of the same basket for tax purposes? E.g., if one make some profits on stocks and losses on futures, does the IRS allow one to deduct the losses ...
-5
votes
1answer
85 views

A goldsmith's hedging strategy, simplified

A goldsmith has bought 100oz physical gold for his trade and payed $1300/oz. He is going to be ready to sell his jewels in 3 months from purchase. In order to hedge against falling prices of gold, he ...
0
votes
1answer
40 views

Gold futures' margin

How is the margin for gold futures determined? Where exactly can I look to find the current margin (pls, state website)?
0
votes
0answers
30 views

Interpreting a Futures Quote

I am trying to understand an F&O Quote page. http://www.moneycontrol.com/india/fnoquote/infosys/IT/2014-06-26 Spot Price 2993.15 Volume 778732 This means 778732 shares were traded on the last ...
0
votes
1answer
216 views

Why futures has a mark to market concept that is not present in stocks

A futures contract is traded just like a stock or an option contract. So how come a futures contract has the concept of mark to market whereas a stock or an option does not have this concept? IS it ...
3
votes
1answer
232 views

Are futures options eligible for the 60/40 tax rule?

How are options taxed when the underlying asset is a futures contract. Futures contracts in the US have a favorable tax treatment known as the 60/40 rule, where 60% of profits are taxed at the long ...
3
votes
1answer
43 views

Futures margin requirements, can more than the initial margin be used to open a contract

Futures margin requirements can be a low percentage in relation to the size of the futures contract. Sometimes, you are only putting down 3% or less to profit from the price appreciation/depreciate ...
-1
votes
1answer
152 views

How to calculate forward price for asset with dividend?

I have this exercise question: A particular forward contract costs nothing to enter into at time t and obliges the holder to buy the asset for an amount F at expiry T. The asset pays a dividend DS at ...
-1
votes
1answer
51 views

What is the difference between future value of cash and Fixed deposit calculator [closed]

suppose my present value of cash is 2,22,051 and its future value is calculated by using the formula FV=PV(1+r)^n with r=8 and n=3.So future value is 12,95,001.432 Now if I go to fixed deposit ...
1
vote
1answer
68 views

What are Inters/Intex/Supers?

The CME Group website, under the Margins tab, has a page titled "Inters/Intex/Supers". See here for example. What are Inters/Intex/Supers?
1
vote
2answers
322 views

How do dividends of the underlying security in a security futures contract affect the security futures price?

I would assume that increases in any dividends would increase the price of the underlying security, therefore causing a relative increase to the security future price. Or is this relationship more ...
2
votes
1answer
349 views

Calculating Daily Returns for Futures Contract

I am calculating daily returns for a position in a futures contract. I am a little stuck with margin and how to account for it. I specifically dont understand how return is calculated after Margin ...
10
votes
2answers
1k views

What is the difference between hedging and diversification? How does each reduce risk?

Hedging and diversification are both used for reducing financial risks, but what are the exact differences between these two?
1
vote
0answers
65 views

Forward Contract Extension

I was reading this article Below is a small snippet from the article. I'm wondering how Barrick gold could extend the hedge at its own option. How would this be executed and how do they have this ...
3
votes
1answer
336 views

Futures contract month code

In futures contracts, the delivery month is reflected in the symbol name with a letter code. The letters for all 12 months in order are F, G, H, J, K, M, N, Q, U, V, X, Z. Where do these letters come ...
0
votes
1answer
264 views

What would stop someone from taking advantage of wide bid-offer spreads in extended hours trading via short selling?

I understand that the less volume occurring in a security, the less liquidity (the wider the bid-offer spread). So my question is, in pre-market and after-hours trading, when bid-offer can widen ...
2
votes
1answer
63 views

Difference between full and mini futures contract

What is the difference between the following two Brazilian futures contracts: The Ibovespa Futures Contract The Mini Ibovespa Futures Contract As far as I can tell, both are priced in Brazilian ...
0
votes
1answer
84 views

How to calculate micro lot leverage?

For these gold and silver products http://www.fxdd.com/us/en/products/metals/, how many micro lots are required so a penny move is worth a dollar? How much leverage does that equal? I've traded ...
3
votes
1answer
268 views

How are futures contracts setup at an exchange?

I'm having a hard time wrapping my head around how the actual contracts are structured at an exchange. Here are my questions: If an exchange facilitates the trading of futures contracts and nobody ...
1
vote
1answer
1k views

Is the delivery price of a forward contract different from the forward price?

Is there any difference between the delivery price and the forward price of a forward contract? From the definition Investopedia gives of forward price and delivery price, they appear to be the same. ...
2
votes
2answers
919 views

How does spot-futures arbitrage work in the gold market?

According to Kitco, the spot price for gold, at time of writing, is about USD 1240 per ounce. At time of writing, CME Group shows that futures contracts are above that price for many months ahead. ...
1
vote
1answer
876 views

How do freight derivatives like Forward Freight Agreements (FFAs) work?

Re: http://www.balticexchange.com/default.asp?action=article&ID=35 Freight derivatives provide a means of hedging exposure to freight market risk through the trading of specified time ...
1
vote
1answer
539 views

Is there a Yahoo Finance ticker for NYMEX Crude Oil Front Month?

I see tickers like on specific monthly futures like CLN13.NYM, CLQ13.NYM, etc. But is there on Yahoo Finance something like "CL1.NYM", i.e. ticker that always is pointing on the front month future. ...
5
votes
3answers
258 views

Why trade futures if you have options

At this link:http://www.investopedia.com/ask/answers/09/options-vs-futures.asp they explain the difference between futures and options. It seems futures is an obligation while options is an 'right ...
4
votes
2answers
280 views

What do these numbers mean? (futures)

The S&P closed at 1588.85 on April 12th. On www.bloomberg.com/markets/stocks/futures/ For stock futures, it gives the following data: > Index Future | Future Date | Last ...
3
votes
1answer
66 views

10-Year Treasury Future Quotes

The CBOE lists the current price for a June 2013 10-Year Treasury future as 132'155. The contract specifications state that the price quote is Points ($1,000) and halves of 1/32 of a point. Does ...
2
votes
1answer
148 views

How is the price of VXX determined?

I'm trying to understand how VXX works (the prospectus on Barclay's Ipath). It says that it has a rolling position in futures (1 month and 2 month). Does that mean that it buys and sells contracts ...
0
votes
1answer
123 views

Futures initial margin and maintenance margin

I just a had a quick question about margin in a Futures contract. Suppose, that I have a Futures contract that requires an initial margin of $1000 and a maintenance margin of $500. Suppose that after ...
4
votes
1answer
1k views

Calculating the profit earned from a leveraged futures contract

How do we calculate the profit/loss of Futures contract? For example, If I had a Futures contract that had $10 000 as the underlying, it had $1000 margin and the Futures contract itself was worth $3. ...
0
votes
1answer
429 views

Evidence for/against negative correlation between commodity futures, stocks

I've heard that stocks and futures are negatively correlated over the medium term - e.g. that if stocks experience a brief rise, futures tend to fall, and vice versa, but they move together in the ...
2
votes
1answer
78 views

How does investing in commodities/futures vary from stocks?

I understand the basic concept behind investing in a company via stock purchases: you get some minuscule percentage of the company, and get to benefit from that ownership. Investing in commodities ...
7
votes
1answer
75 views

FTSE exposure in US Exchanges

Is there a FTSE 100 index futures contract that trades on the US exchanges? Thanks I think there is an ETF but I am looking for futures, mainly for charting purposes.
2
votes
2answers
145 views

Hedging against rising oil and gas prices for private households?

Inspired by this article Hedging Against Rising Heating Oil Prices using Heating Oil Futures, I wonder whether hedging against rising oil and gas prices makes sense for private households, too? If so, ...
0
votes
2answers
164 views

Futures price of Eurodollar futures

From Wikipedia: The Eurodollar futures contract refers to the financial futures contract based upon these deposits, traded at the Chicago Mercantile Exchange (CME). ... CME Eurodollar ...
5
votes
3answers
1k views

Do futures have premium in the price, just as options do?

Looking at Wikipedia's the pricing of futures, I wonder if entering into a futures contract requires one to pay premium just as entering into an option contract? In other words, is the premium of a ...
1
vote
3answers
889 views

Search index futures in Yahoo Finance or Google Finance

I was wondering if index futures and options information are available in Yahoo/Google Finance. Say futures/options for Dow Jones Industrial Average.
1
vote
1answer
138 views

How do I interpret the price of Eurodollar futures?

For example, in this image, what does 99.4600 mean? I know the current EURUSD rate is about 1.38, so does it mean 99.4600*1.38 on Dec 2011? Any ideas?
2
votes
2answers
77 views

Trading when you work for a market participant

I work in the IT department at a Futures FCM. While I'm aware that there are insider trading rules with respect to our company stock, I'm still not clear on what it means for my own participation in ...
3
votes
1answer
81 views

How prevalent are futures in the agricultural industry?

I realize that many agricultural companies sell their crops or livestock via futures contracts to manage the risks inherent to their industry. It seems to me that this kind of activity would be ...
4
votes
2answers
196 views

How far into the future is a stock future? How do stock futures work?

I have been looking at the markets recently and most of the time, I see similar articles on how the market is going to do depending on how futures did. I am not that familiar with futures, but how ...
3
votes
3answers
219 views

How do you go about buying currency futures for foreign currencies?

I was interested in buying currency futures for some foreign currencies. How do you go about getting these? I am looking for 6 to 12 month futures.
4
votes
4answers
9k views

How much would it cost me to buy one gold futures contract on Comex?

I am looking at gold futures prices: http://www.cmegroup.com/trading/metals/precious/gold.html I cannot figure out how much one futures contract of gold would cost me to buy if I were to buy it from ...
4
votes
2answers
189 views

Can the shorting of S&P futures negatively affect the underlying index and constituent stocks?

I hear people on financial shows talk all the time about index futures like SPY and QQQQ affecting the actual index. Can shorting these futures (in huge quantities obviously) cause the underlying ...
3
votes
4answers
113 views

Are buying and selling futures based on objective data?

I was thinking the other day that buying or selling futures is like gambling. It's based on no objective data and once you start pouring your money into it you can lose a lot... Are buying and ...
7
votes
2answers
148 views

Does a high demand for long commodities Futures push up the underlying spot price?

Let's take a commodity as an example - oil. Suppose there is suddenly a high demand for a 30-day oil futures contract. Will that push up the spot price on oil? I would guess that this would affect ...
6
votes
2answers
230 views

What are futures and how are they different from options?

As a form of investment there are contracts to buy commodities at a specific time in the future or at a specific price. How is this different from an option to buy a share?