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Questions tagged [futures]

For questions relating to futures contracts.

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2 answers
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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 ...
Bob's user avatar
  • 1,673
31 votes
10 answers
20k views

Could I make money off of the negative oil price?

I saw the price of oil did something at about 1 PM Eastern time that is really bizarre: it went negative. This means that you get paid to take oil off the field. But, the oil price is negative now, ...
Number File's user avatar
20 votes
3 answers
11k views

What happens if I do not honor a futures contract?

I have little knowledge about futures contracts. The recent negative price of crude oil spurred my curiosity about this stuff. I read this post about buying/selling futures contracts. According to ...
William's user avatar
  • 373
4 votes
2 answers
717 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 ...
Matt Phillips's user avatar
6 votes
1 answer
11k views

How does the futures market affect the stock market?

For instance, at this current moment the SP500 index is at 2094 while the futures on this market, symbol /ES with a contract of June is at 2088. Can someone please explain how traders and investors ...
Jon's user avatar
  • 629
3 votes
2 answers
411 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
  • 131
2 votes
1 answer
360 views

To buy S&P minis or SPY (or VOO)

Let's say I'm going to buy in the market to hold. What are the pros and cons of buying MES futures instead of SPY ETFs for exposure to S&P500? From a high level I know that MES is $5 per point ...
Dean MacGregor's user avatar
2 votes
1 answer
284 views

Why the S&P futures prices are not reflecting the general bullish sentiment of the US stock market

It seems that general sentiment on the long term trend of the US stock market is currently bullish, fuelled by a strong dollar and falling oil prices. Why then are the long term futures (MAR 2016) ...
Victor123's user avatar
  • 16k
0 votes
1 answer
149 views

What is the loss difference between offseting and rollover the contracts?

If you are long a futures contract that comes near to expire, you have two options: Offset the position or rollover the contract You have to take delivery of the underlying commodity For example, ...
Ethan Alberton's user avatar
0 votes
2 answers
2k views

Time decay of futures

Web site such as this one here state that futures contracts do not experience time decay. I fail to see why futures do not experience time decay. The way I see it (perhaps incorrectly) is like this: ...
the_photon's user avatar
20 votes
7 answers
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 ...
Flux's user avatar
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6 votes
1 answer
11k 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 ...
CQM's user avatar
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4 votes
1 answer
6k views

What is the effect of dividends on the futures price of an index

The futures price of an index already prices in expected dividends that the companies of the index are expected to pay out, correct? So can I conclude that when a company like AAPL announces a ...
Victor123's user avatar
  • 16k
4 votes
1 answer
255 views

What is the minimum amount of money that is needed to start trading in the London Metal Exchange?

How much money is needed to start trading in the London Metal Exchange (LME)? I am interested in investing in cobalt, lithium, and nickel.
vasili111's user avatar
  • 235
2 votes
1 answer
271 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 ...
Flux's user avatar
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2 votes
4 answers
13k views

Buy or sell futures contracts

I cannot find a clear and unambiguous definition of the terms "selling futures contract" or "buying futures contract". From Hull's book: [...] a futures contract is an agreement between two ...
user avatar
1 vote
1 answer
134 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 ...
Jerry Zhang's user avatar
1 vote
1 answer
345 views

How to read double apostrophe prices in futures options?

How to read double apostrophe prices in futures options?
huab's user avatar
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1 vote
2 answers
2k views

When are funds available for a withdraw or to trade after a Futures /ES Emini contract? T+3 settlement

Stocks seem to have a 3 day wait (trade plus 3) T+3 for funds to be available to place another trade or withdraw cash without getting a "FED CALL". Options seem to have a 1 day wait. When are funds ...
fred's user avatar
  • 11
1 vote
1 answer
154 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 ...
William's user avatar
  • 373
0 votes
2 answers
571 views

How do Bitcoin futures acutally affect the underlying spot market?

Lets say when the futures expire today on settlement date, does the seller of the future actually literally sell BTC on the open market so he can pay the cash to the Future buyer/holder? I was told ...
omega's user avatar
  • 1
0 votes
3 answers
1k 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 ...
Futurist's user avatar
0 votes
0 answers
2k views

Meaning of "non-reportable" and "dealer intermediary" in the CFTC COT report

What is intended with "non-reportable" and "dealer intermediary" long/ short positions in the CFTC COT report HERE? My toughts of "dealer intermediary" is that they could be the fx brokers; in other ...
Someone33's user avatar
  • 123
0 votes
1 answer
185 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