Questions tagged [futures]

For questions relating to futures contracts.

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How to report 1256 future contracts gains/losses?

I am a student in the US on F1 visa. I have been involved in trading future contracts and cannot find correct way of reporting the gains/losses from doing so. I received 1099 B with a section 1256 ...
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Why can't I do an adaptive order on Futures Options?

Interactive Brokers has the ability to adaptive algorithmic orders that (I'm simplifying this greatly) can split the difference in the bid ask price without human intervention. I can do these types of ...
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Futures Options: Options Expiration vs. Underlying Delivery

Does the expiration of a futures option always determine the delivery date of the underlying, in particular does the option always expire into the earliest-delivering futures contract? For example, /...
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VIX futures margin calculation

I'm new to futures and I'm trying to understand how margin is calculated when it comes to VIX. For the sake of example, let's say VIX is 20 today and 60 day VIX futures are selling for 25. So far, ...
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How futures contracts are managed by the exchange

Please, confirm my current understanding of how futures work. Let’s consider cash-settled futures for simplicity. The number of futures contracts (with identical parameters) is unlimited. New futures ...
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How did the ES=F get its ticker name? [duplicate]

What's the history behind the ES=F name? F for futures, maybe, E for the E-Mini contract, S for Standard and Poor. But what's with the =?
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Equity curve money management strategy to minimize drawdowns

Some high risk/returns automated trading systems requires an on/off switch as a fail-safe feature and to minimize drawdowns. Besides using a moving average on the equity P&L curve to turn on/off ...
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Is there a theta in futures?

Is there a theta/delta (like in options) in futures? I mean, if the spot price of the underlying (for example: crude oil) up $5, Is there a ratio that the front 6 months contract will be affected, and ...
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Why do i see this significant dip in OI on the first tick

Why do we see a huge(relatively) dip in OI on the first tick when the market opens ? Does this happens because people closing out their previous position the moment market opens ? Or there is ...
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Short postion - Futures contract

Assuming that an investor holds his short position until maturity and that he cannot close out his position. Will a seller that doesn't own the underlying ever enter into such a position?
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Did weather futures ever trade in open outcry at CME?

Did weather futures ever trade in open outcry at CME (Chicago Mercantile Exchange)? If so, what dates? Also, what floor and pit? Thanks.
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Futures market and different participants

Question: In the futures market, how can speculators and long-only funds have a market impact on outright price? How might they affect the market's outright volatility? How might they affect the ...
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Why enabling do not reduce DNR order prevent me from trading futures and forex?

When I asked my broker to enable DNR -do not reduce- order, he inform me that to enable that I will not be able to trade futures or forex anymore? What is the relation between them?
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Where can one buy futures contracts to insure against large energy bills due to natural gas price increase?

My energy contract will be renewed at the end of the year. The extremely large increase in the natural gas price means that I'm not going to opt for a fixed energy price for several years, I'll ...
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Difference between trading ETFs and the corresponding futures? GLD or /GC? UNG or /NG?

I am taking a hard look at options trading and I am starting with a modest account of $10,000 (I mention this because I think it might be relevant to the question). What is the difference between ...
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Does an online trader affect futures prices as a real (physical) trader?

When I buy a future contract (1 contract), will I affect the price and volume and the other numbers, the same as a physical trader (if he buys 1 contract), Will the trade volume increased by two or ...
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What happens if a futures exchange increases margin requirements while I have open positions?

Specifically, what happens if my current position is already close to (or at) the maintenance margin level and the exchange then increases margin requirements? For example, First Day (end-of-day): ...
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Are commodities ETFs risky as commodities futures in needing margin calls and limited time to hold or they are like stocks?

Are commodities ETFs risky as commodities futures in terms of needing a large ammount of balance and margin calls and limited time to hold, or they are like stocks?
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When I take a position in a perpetual future (e.g. 3x long), must there be someone holding the opposite position (3x short)?

When I take a position in a perpetual future (e.g. 3x long), must there be someone holding the opposite position (3x short)? If so, suppose I entered a long 3x position on an asset at $100 and you ...
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Do ETF/ETNs invest directly in futures or forex, or do they just invest in stocks and bonds?

Do ETF/ETNs invest directly in futures or forex? Or do they just invest in stocks and bonds?
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How is the first price of us treasury futures decided?

How is the first price of u.s treasury futures decided? Does it depend on the last price of the previous future contract ?
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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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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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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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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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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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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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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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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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How to read double apostrophe prices in futures options?

How to read double apostrophe prices in futures options?
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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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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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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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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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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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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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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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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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3 votes
2 answers
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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 ...
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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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2 votes
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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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1 vote
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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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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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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 ...
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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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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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1 vote
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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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4 votes
2 answers
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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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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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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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