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Questions tagged [futures]

For questions relating to futures contracts.

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How does Binance allocate Margin to Cross mode position?

I'm trying to get my head around the values shown in Binance's Futures position, and how they're related to one another. I'm puzzled about the Margin column in the Positions view. It appears as if the ...
David's user avatar
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1 vote
1 answer
69 views

treasury bond future confusion

I'm not really understand how treasury bond futures work. Take the 10-Year T-Note Futures. Currently, it lists that the June 2024 one is settling for $109,000 (and each T-Note has a face value of $...
APerson's user avatar
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When do proceeds from futures settle?

When does my money I used to buy a futures contract and the proceeds I got from that contract convert back into buying power. Is it then end of each session, the next day, or two days after I sold my ...
Landon Gross's user avatar
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0 answers
30 views

What are the settlement times trading futures in a cash account

So I’ve been trading options for almost a year now and have decided to give futures a try. I have a cash account not a margin and know that with options once I trade all the settled cash in my account ...
Landon Gross's user avatar
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0 answers
22 views

Initial margin requirement for futures

I am sitting an exam for a certification from the Greek Capital Commission. We have been given multiple choice questions along with their answers in order to prepare ourselves. I am really confused by ...
johnniem's user avatar
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48 views

Are the any benefits of using a futures long position with no leverage over a spot buy?

When you want to bet that a price on a certain stock will go up, what are the benefits of going in a futures long position, over doing a spot buy? Assuming that you are not using leverage and doing on ...
Martin Taleski's user avatar
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1 answer
79 views

Why do futures allow higher leverage?

Why do futures allow higher leverage? Shouldn't the risk of a futures contract be the same as the spot. In that case, why would brokers feel more comfortable handing leverage to futures traders vs ...
Joe C.'s user avatar
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2 answers
96 views

why would a forward ever have a premium?

In a financial derivatives lecture that I'm watching, the professor brings up an example of where someone might want to use futures. A hedge fund holds a large proportion of Company ABC's shares, ...
APerson's user avatar
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1 answer
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References/terms to search for regarding financial instrument universe selection

When attempting to profit off of the market in one way or another, an entity, be it a fund, individual investor, institution, etc., must first decide on what actual financial instruments are to be ...
QMath's user avatar
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1 answer
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Trying to teach myself futures ,have some queries

I understand the basic idea of futures when it comes to like hedging and companies using it to manage costs, however when it comes to trading them I am completely lost. All i know is that in a market ...
j jose's user avatar
  • 39
2 votes
1 answer
96 views

Is Having a Superior Spot Predictor Sufficient for Making Money in Futures?

My friend is encouraging me to get into futures trading, but before I do I want to understand something. Is having a better spot predictor than everybody else sufficient to make money in futures? For ...
James Strieter's user avatar
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1 answer
71 views

Market Structure for Futures

I'm confused about how payment for futures contracts works if one sells before expiry. Consider the following scenario with a contract for delivery of good X: A sells a futures contract to B for $50 ...
ikeywikeywoo's user avatar
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1 answer
285 views

How to properly hedge indices futures NQ by selling leveraged index options TQQQ or SQQQ?

Is there a formal futures NQ vs TQQQ options contracts hedging ratio calculation/strategy to tap on the fast decaying value of weekly expiry TQQQ options thereby creating an asymmetric risk-reward ...
surewin's user avatar
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2 answers
2k views

S&P ES Futures Pricing Vs SPY/SPX

Is there an accurate and strategic ratio between the price of the ES E-mini Futures and that of SPY? Despite the Quarterly rollovers, given the current quarter, I notice that typically ES is higher by ...
Steve237's user avatar
  • 167
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2 answers
177 views

Comparing option deltas of significantly different underlyings

Please help me correct or confirm my intuition about options deltas. My understanding is that delta is the change in an option's price given a $1 change in the option's underlying. Moreover it's ...
geofflittle's user avatar
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1 answer
137 views

How do the practicalities of futures contracts for commodities work?

I know in principle how future contracts work (and correct me if I'm wrong): Essentially, provides a contract holder with the right to buy a commodity in the future at a given price. This part, and ...
bullfighter's user avatar
3 votes
2 answers
374 views

is future contract price fixed or not?

I thought that Future contract is an agreement to buy or sell an asset at a certain future time and a predetermined fixed price. So if, for example, I need to get 1000 GBP next June, but I am afraid ...
devCharaf's user avatar
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1 answer
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How does daily futures settlement work when the futures are backed by bonds/bills?

I've got a futures account at ETrade which is backed by a normal trading account. If I put cash into the trading account it shows up as buying power in the futures account, and if I have a futures ...
Andy's user avatar
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3 votes
0 answers
73 views

Why less leverage is allowed for cryptocurrency Spot trading?

I realized brokers and exchanges allow high leverage for Futures, Options and Forex listings but not so much for spot listings. For example in Kraken Futures you can get 50x leverage for BTC-Perpetual,...
Ömer Kurttekin's user avatar
0 votes
1 answer
126 views

Not understanding futures price

I don't fully understand Futures & Forward pricing. I know that there is a delivery price and the actual future price. And that at the time of issuing, the future price is identical to the ...
Riccardo Perego's user avatar
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1 answer
96 views

Forward vs Future rates

Looking at the market data for USD/CHF on investing.com and can't get my head around the difference between the forward and futures rates for this pair. USD/CHF spot rate is 0.9898 MAR23 Futures ...
Vitaly Samara's user avatar
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1 answer
199 views

How to know increasing open interest indicates new short contracts or longs contracts?

I trade on crypto market and recently I have learned that there is a tool or something named open interest which tells you the amount of long and short open contracts at any time. It is really helpful ...
Kia Khoshvaght's user avatar
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0 answers
35 views

Pricing Futures with Short Sell Restrictions and Borrowing/Lending Costs

From the book "Derivatives for the trading floor" by Patrick Boyle, it has no answers, so I'm curious as to what they are. In a free market from transaction costs, arbitrage opportunities, ...
Winston Zhao's user avatar
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0 answers
51 views

Why do the quarterly "PM settled" options for the S&P 500 futures have about 1000 points between each strike price?

I'm looking at the options chain for the S&P 500 futures. Almost every option contract I look at, whether it's a daily option, weekly option, monthly option, or quarterly "AM settled" ...
7529's user avatar
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0 votes
1 answer
88 views

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 ...
Hisham Hijjawi's user avatar
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0 answers
52 views

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, /...
Kevin Niemann's user avatar
0 votes
1 answer
143 views

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, ...
Lajos Nagy's user avatar
0 votes
2 answers
87 views

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 ...
ambienthack's user avatar
0 votes
2 answers
2k views

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 ...
huab's user avatar
  • 927
0 votes
1 answer
72 views

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 ...
Namit Sinha's user avatar
0 votes
1 answer
71 views

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?
deadlock's user avatar
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104 views

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 ...
Count Iblis's user avatar
0 votes
1 answer
86 views

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 ...
huab's user avatar
  • 927
1 vote
1 answer
80 views

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): ...
wanageeska's user avatar
0 votes
3 answers
84 views

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?
huab's user avatar
  • 927
-1 votes
1 answer
195 views

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 ...
Crocodile's user avatar
1 vote
1 answer
138 views

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?
huab's user avatar
  • 927
0 votes
1 answer
59 views

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 ?
huab's user avatar
  • 927
3 votes
1 answer
161 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 ...
Tony Sepia's user avatar
0 votes
1 answer
177 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-...
not2qubit's user avatar
  • 231
4 votes
1 answer
301 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 ...
Flux's user avatar
  • 17.1k
0 votes
1 answer
133 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 ...
huab's user avatar
  • 927
0 votes
1 answer
88 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 ...
huab's user avatar
  • 927
2 votes
1 answer
94 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 ?
huab's user avatar
  • 927
1 vote
1 answer
335 views

How to read double apostrophe prices in futures options?

How to read double apostrophe prices in futures options?
huab's user avatar
  • 927
1 vote
1 answer
119 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 ...
huab's user avatar
  • 927
0 votes
0 answers
87 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 ...
huab's user avatar
  • 927
6 votes
1 answer
3k 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?
huab's user avatar
  • 927
0 votes
2 answers
215 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 ...
huab's user avatar
  • 927
3 votes
1 answer
159 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) ...
B K's user avatar
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