Questions tagged [futures]

For questions relating to futures contracts.

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21 views

Intraday margin rates from futures brokers

I think I have a decent grasp on how initial margin, margin calls and maintenance margin work, but FCMs/brokers add their own intraday margin rate, and I need to clarify exactly how to calculate the ...
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1answer
106 views

Who are the non-speculative buyers of futures options?

I am trying to understand who would be a non-speculative buyer of options contracts on futures. There are a plenty of descriptions of how options work online, but mostly they omit this crucial part of ...
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1answer
54 views

What is happening during the maintenance hour of E-Mini S&P 500?

I'm trying to better understand the trading hours of the E-mini 500 S&P, which according to the CME Groups web pages are shown like this: This is, however, rather incomprehensible for anyone non-...
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1answer
202 views

Trading Places (1983 film): Is it really possible for futures exchanges to seize their members' assets?

I am trying to understand a scene in Trading Places (1983 film). After Randolph and Mortimer Duke failed to corner the frozen concentrated orange juice (FCOJ) futures market, the following ...
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1answer
43 views

Can you explain to me, in what months are the futures and options on gold and silver listed, based on the CME description?

I read the following contract specifications from CME and couldn't figure out/understand it. On Gold; Futures: Monthly contracts listed for 3 consecutive months, any Feb, Apr, Aug, Oct in the nearest ...
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17 views

I need help understanding a type of futures strategy

I need some help with futures for my finance class. I was given example where a long future is countered with a short future. However, I can't really work out why it's beneficial (the instructions are ...
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1answer
51 views

Questions about Margin in the Futures

(I'm beginner) 1- Can I buy/pay the whole contract price without margin (the broker will have no risk at all then- no need for maintenace margin) ? 2- Is this borrowing money so I need to pay interest ...
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1answer
55 views

Why there are duplicated option chains in futures?

As in the screenshot, there are two and three similar option for the same contract with same expiry date. What is the reason ?
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1answer
91 views

How to read double apostrophe prices in futures options?

How to read double apostrophe prices in futures options?
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1answer
91 views

Are future options per 100 unit?

In futures (for commodities, indices, fx...); Is 1 option for 100 future contracts ? For example: If I want to make a covered call option for Gold and for micro Dow jones future, How much should I buy ...
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42 views

Why are the futures prices different from the buying power effect?

I'm beginner, When I buy 1 share of a $10 stock, the buying power effect/costs = $10+Commission but in futures, the cost is very different from the quoted price, is futures quoted price different from ...
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1answer
1k views

What do single quotation marks in the price of futures mean?

What are those single quotation marks in the price, and how to read them?
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2answers
110 views

How to calculate the price of 1 Kilogram of each traded-commodity?

What does the quoted price of each of the below commodities represent ? (eg: Gold price below = 1 ounce ; cooper = ...1 ton ?) How can I convert the listed prices to show the price of 1 Kilogram of ...
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93 views

Why short (German) government bond futures?

Today, mainly out of curiosity, I went to a major ETF comparison website and sorted the short ETFs by market value. I was surprised when among the first few places in the list I found an ETF (LYX0FW) ...
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2answers
72 views

Backwardation or Contango?

I was looking for graphs of backwardation and contango but I've found seemingly contradictory image results: For instance this image and this one show contago on top, but this one shows it on the ...
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1answer
321 views

Why not sell ETNs (Exchange Traded Notes) untethered from roll yield?

I rewrote these two questions with numbers and edits. Pls explain like I'm 5. I don't understand any of the comments that just raise more questions! What the heck's "a predictable and ...
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1answer
151 views

Where would my futures contracts go if the counterparty gets liquidated?

What would happen to my futures contracts such as S&P500 futures if the counterparty of my contracts gets liquidated due to a heavy use of leverage? Since futures contracts are made between two ...
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2answers
116 views

Is there something like a covered call for futures?

I am making my first baby steps in learning about future contracts. In the option market there is something like a covered call, where one can limit the upside risk to the loss of the shares one ...
2
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1answer
50 views

How futures are sold, when they are first released?

When termed futures are released in the market, such as XBTU21 (Bitcoin futures for the 3rd quarter), how are they sold in the market? Stocks, for example, are sold through IPO when they are first ...
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0answers
89 views

Am I understanding the math of this futures contract trade correctly?

DISCLAIMER: To be clear, I have zero interest in trading futures. I don't have the knowledge, risk appetite, or capital for that. I'm just asking this to learn. The S&P 500 closed at 3,939.43 on ...
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1answer
54 views

TNote 10yr Futures YTM vs market yield?

I understand how to calculate the yield on a 10 yr TNote based on face, price & coupon. I don’t understand why the yield (and price) on a futures contract about to expire is so different than the ...
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3answers
127 views

Size of market for physically delivered futures

I understand the difference between cash settled and physically setted futures contracts. I also know that most physically settled contracts end up not being exercised and are closed before expiration....
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1answer
146 views

Should an amateur keep hands off Futures Contracts / Futures Trading?

I am a total beginner in the stock market. I have bought only 1 stock so far, but later sold it with almost 30% profit. Now as a next step, I wanted to increase my profit thanks to the leverage effect ...
2
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1answer
62 views

Isn't this graph of contango wrong?

I found this image describing contango with the accompanying quote. I expected the graph be in the opposite direction that is price being lower today than in 1 year. Is this graph wrong? is the ...
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1answer
148 views

Why isn't contango in crypto futures markets simply arbitraged away?

Currently (21-Feb-2021), bitcoin futures markets are in contango, with contracts maturing at the end of June trading at about a 9.1% premium to the spot price. My assumption is that one could purchase ...
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0answers
53 views

Non-US citizen/resident trying to begin trading options and futures

I'm from Brazil and I already trade shares, options and futures here for ~5 years in the Brazilian stock market. I began trading shares in the US stock market a few months ago using the Passfolio ...
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2answers
941 views

Is investing in index futures better than investing in index funds? [duplicate]

Given that futures price is equal to S*e^(rt), it is possible to create a synthetic investment into an index by: entering into an index future for the amount of money which are planned to be invested ...
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3answers
203 views

What is the gambling difference between sports betting and trading stock market derivatives based on indices?

What is the practical difference in terms of gambling between wagering on the future score of a sporting match and wagering on stock market derivatives based on indices, such as the future value of ...
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0answers
34 views

Can I use stocks as margin for commodities futures?

Last week, I bought 4 shares of emicro gold futures (https://www.cmegroup.com/trading/metals/precious/e-micro-gold_contract_specifications.html) worth about 70k. I got a margin call for owning those ...
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3answers
212 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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45 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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0answers
43 views

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
75 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
31 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
71 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
62 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
50 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
59 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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46 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
58 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
52 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
93 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 ...
3
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1answer
63 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
95 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
148 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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2answers
107 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
59 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
114 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 ...
14
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3answers
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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