Questions tagged [futures]

For questions relating to futures contracts.

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121 views

Do futures markets have any predictive potential?

Comparing the WTI Crude Oil spot prices of the last five years with WTI Futures prices for Nov'2020 over time, it seems that they mostly follow the current price. This seems to enable one to lock in ...
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43 views

Why derivatives markets are the most fragile in times of correction?

I read an article about bitcoin derivatives which has been skyrocketing lately. The author wrote at the end of the article: "Derivatives markets are the most fragile in times of correction, ...
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How do we trade and earn profits in future contracts? [closed]

Suppose there is a future contract with a market price of $100 and its lot size is 50, so can I purchase the lot at $100? And while selling before expiry or in intraday, suppose the price is $150, so ...
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2answers
63 views

How does clearing house deal with such cases?

Imagine that I entered short into futures contract for asset "A" at the price 100 USD. Lets say that on the other side John went long. Contract expires in one year. I don't use leverage and ...
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1answer
25 views

How do futures affect my maintenance margin requirements in my margin?

Hypothetical Background: I have an Reg T margin account with Interactive brokers. I have a maintenance margin requirement of ~30% for that; I have calculated the drawdown necessary to get a margin ...
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1answer
48 views

Futures and dividends

Let's say I have a portfolio of futures for a long period (let's say 2000-2020). All of my underlyings are equity indices. I am always invested in the next maturity futures (thus I never wait for the ...
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1answer
57 views

What is futures price?

Suppose that today is January first. I see from financial news that spot price of object A is 100$ and first of March futures price of object A is 150$. What does it mean exactly that futures price is ...
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1answer
44 views

confused about futures date versus tomorrow's value of underlying stock

A beginner question, I am puzzled about futures on the S&P500. I believe the futures contract arranges a price to purchase the underlying at fixed dates in the future (such as expiring in March); ...
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1answer
53 views

Who are the writers of index futures?

For futures, such as oil futures, I understand that the oil companies would be the writers of the oil futures to lock-in selling price. In this context, these oil companies have the underlying assets, ...
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0answers
39 views

Return on a futures contract

If Sam invests $200000 on Futures and takes Futures short position on an index fund whose settlement is one year from now, with the current futures price being $1200. The relation between spot price(S)...
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1answer
55 views

Where can we see Futures Volume?

Does anyone know where I can see Futures volumes? None of the boards show it.
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1answer
48 views

Do futures regulations stipulate a minimum account balance?

I opened a futures trading account at a futures brokerage that requires a $100 minimum deposit. Are these minimum deposits specified by any regulator, or is it up to each broker to set a minimum ...
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1answer
86 views

How do I protect myself against a futures broker's collapse?

I noticed that SIPC does not cover futures. Accounts at futures brokers are not protected by SIPC. If I am worried about the possibility of a futures broker's collapse, what should I do? Do I need to ...
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61 views

If a European investor goes long or short the US ultrabond future, are they taking any forex risk or is it all interest rate risk?

(The Ultrabond future is a bet on the price of 30-year US treasury bonds, which are dollar denominated.)
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1answer
24 views

How to find world market index symbols in different brokers (i.e. TOS, RH)

I use Thinkorswim to check on the E-Mini S&P 500 futures, 'ES20', but I also want to see the FTSE 100, CAC 40, AEX, Hang Seng, etc. But when I enter those names to the search field I get no ...
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3answers
116 views

Buy and hold VIX futures for guaranteed profit?

This question was inspired by this Motley Fool article: VIX Investing: Why Not Just "Buy Low Fear, Sell High Fear"? Buying low fear and selling high fear seems to be a guaranteed profit ...
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97 views

How to get fiat liquidity on BTC assets

I am bullish on BTC and at the same time I need some fiat liquidity right now. Is there some combination of financial products I can use? As an example: I have 10 BTC (assume current FX $10,000) I ...
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1answer
56 views

Futures prices reported on websites and media

You would often see a list of futures prices on stock websites. For example, on Seeking Alpha: What are the expiry dates of the futures they are referring to, particularly for the Dow, S&P and ...
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1answer
108 views

how to use SP500 future to predict the stock market

I have another naive question. On Thursday night and before Friday morning, after Trump posted on twitter saying he contracted Covid-19 around 12:50AM. The news media was saying the US stock market ...
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7answers
5k views

Can I hedge my household expenses using the financial markets?

Apparently farmers can hedge against high raw material prices and low crop prices by using financial instruments such as forwards and futures. Can I use financial instruments to similarly hedge my ...
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3k views

Why are options more popular than futures among retail investors?

I am puzzled as to why options seem to be more popular than futures among retail investors. Brokerage firms seem to emphasize their options offerings more than their futures offerings. On Robinhood, ...
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2answers
107 views

Maximum Profit (Options Vs Futures)

Consider this scenario: Say the S&P 500 closed at 3400 today (Sep-9) and you knew (100%) for a fact that by the end of trading day tomorrow (Sep-10) 4pm it will close at 3200. So now, given this ...
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1answer
26 views

Can any index be converted to a respective trading instrument using F&O contracts?

Pardon me if this sounds silly, I am not a finance student but it seems to me that any index can be used as a trading instrument with proper regulations. For example much like forex, with currency ...
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1answer
52 views

Can any European-style options be exercised before expiration?

I found a page that says the following about European-style options (in the context of weekly and end-of-month options for S&P 500 futures): European-style options can be exercised only on the ...
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2answers
286 views

Do most future traders really believe that stock prices will be lower in the next two years?

I am looking at the following website that shows the stock futures chain https://www.cmegroup.com/trading/equity-index/us-index/sandp-500.html The way I read this, the further out you go, the lower ...
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0answers
38 views

How to set take profit when there is no position yet

I'm trading on binance futures and sometimes I see a nice (for example) resistance level. I then set a limit sell order so that if price reached that level I sell x coins. However I would also like to ...
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289 views

What time do gold futures weekly options expire?

What time on Friday do gold futures weekly options expire? For example, I am interested in knowing what time the /GCV20:XCEC 1/100 AUG 20 (Wk2) /OG2Q20:XCEC 1925 CALL option expires this Friday. I ...
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1answer
128 views

How can I verify that a futures broker is legitimate?

To verify that a stock brokerage firm is legitimate and not a scam, I can use FINRA's BrokerCheck. Some stock brokers helpfully provide a link to BrokerCheck in the fine print at the bottom of web ...
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1answer
163 views

What are the situations that could cause unlimited liability in my stock brokerage account?

I have a stock brokerage account, and I want to make sure that the things I do in it will not cause me to be liable for more than the amount I put into the brokerage account. My question is: under ...
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1answer
96 views

How will Options on Micro E-mini S&P 500 futures be taxed in the US?

CME is going to publish a new contract: Options on Micro E-mini S&P 500 Future in Aug 31, 2020. I was wondering how will it be taxed? There's already discussion like Are futures options eligible ...
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1answer
69 views

Who are allowed to take short positions in WTI CRUDE Oil futures?

Can any individual like me take short position?
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2answers
155 views

Who creates oil futures?

Who creates futures such as CL.AUG20 (August WTI Crude Oil contract) sold on NYMEX which can be bought via eToro? I understand that when a company wants to go public, they sell these stocks on an ...
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1answer
38 views

What is the meaning of asset underlying the futures contract?

I am reading a book of J.C Hull on Future and option where he explained the basis risk which is S2 + F1 - F2 or F1 + b2 I got this concept but reading further he expand above expression as F1 + (S*2 - ...
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36 views

How is money calculated when buying BRR future on CME through IB?

I tried on simulated account to buy 1 BRR future (multiplier = 5). Total amount with commissions expected was 49280 Initial margin expected was +31047 Maintenance margin expected was +24837 ...
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3answers
140 views

Does Futures markets influence price?

I have a few questions: For example I am going LONG on ES1! with leverage. I don't acquire an actual S&P 500 fund but as how futures work I just have a contract that I believe its price is going ...
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2answers
74 views

Stock splits and futures/options contracts

Let's say a company's stock is going to get split into two. All derivative contracts, such as options and futures, will be adjusted accordingly, of course. When are the futures and options contracts ...
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1answer
136 views

What exactly is the spot market?

I understand for commodities such as crude oil, there is NYMEX exchange where futures contract are listed and traded. Where exactly do I find the spot market? How does it work? Where is the price ...
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1answer
41 views

Understanding futures contracts points

Currently, the SPX is 3044.3 and the ESM2020 (JUN 2020) is 3043.50. Can someone explain to me how the E-mini quote work? I am not asking about the profit/loss calculations but how do I assess this ...
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1answer
94 views

If I invest in futures in my IRA, what am I going to see happen?

I have a Roth IRA with TD Ameritrade. I've been thinking about investing in stock futures in order to get higher expected returns (at the expense of very high risk, of course). I'm wondering what, ...
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2answers
416 views

What is SPX500USD?

I am wondering what is SPX500USD? https://www.tradingview.com/symbols/OANDA-SPX500USD/?route_range=full This has a different value than the SPX. I am thinking this is some sort of futures? Thank ...
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26 views

Entering or exiting a position on “sell bid or sell ask”

I just have a question I’m curious about Lets say you are long ABC and you want to get out and you decide you want to sell on the bid Lets say the bid price is trading at 10 When hitting that “sell ...
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24 views

What kind of orders can be placed in a limit up or limit down?

Although the market is halted, can traders still enter in a market order or a limit order? Page 4 says it is a quote only state. Does this mean traders can enter in limit orders that are open and not ...
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1answer
365 views

Impacts on RBC banning USO explaining to a futures beginner

As you might be aware of this recent news: "RBC Capital Markets has informed United States Commodity Funds, the operator of the USO ETF, that they may no longer hold positions in or buy oil futures ...
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1answer
133 views

Futures expiration date vs settlement date terminology confusion

As titled, are futures settled on the expiration dates, meaning either physically settled or cash settled on the same dates? My confusion is if I purchased a June crude oil futures now, when is the ...
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15 views

Futures Commission Merchant Maximum Commission

Is there a maximum round turn commission FCM's can charge their customers? I looked here: NFA Assessment Fee and here for a fee break down. There is no maximum round trip fee for commission such as $...
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1answer
67 views

Futures contract [beginner quick help]

I understand the basics of how the futures work but couldn't understand based on a practical sense as a speculator. "A futures contract is a legal agreement to buy or sell a particular commodity ...
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26 views

Result of a failed delivery of futures contract [duplicate]

I am curious about, what if the seller couldn't deliver the physical product of a futures contract? Will there be any penalty or something like that?
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1answer
50 views

What does it exactly mean by saying “buy/sell a futures contract”?

If I buy a crude oil futures contract at $20/barrel and sell it later at $10/barrel, I seem to buy/sell two different contracts. First, the entities of the contract change from me and exchange to ...
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147 views

What is the real cost for storing a barrel of crude oil at present?

The recent negative price of WTI crude oil futures contract indicates the receipt/storage of a barrel of crude oil can cost more than $37, which is unbelievable. Does anybody know the real cost at ...
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1answer
66 views

If I buy a crude oil futures contract at CME, must I sell the contract before the last trading day?

Does CME have different contracts for different traders, i.e., some traders must close their positions before the last trading day of their futures contracts while others can hold their position to ...

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