Questions tagged [futures]

For questions relating to futures contracts.

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89 views

Futures - Eurodollars basic questions

I've been learning about trading futures markets and had a few basic questions. The Dec-20 Eurodollar trades at 98.59 (i.e. by Dec-20 investors are expecting 3 month LIBOR rates to be 1.41%). Now ...
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39 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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2answers
117 views

Invest in Commodity Index ETP avoiding the rolling Yields

I am looking to invest in an ETP which is based on a Index of Commodities basket. From previous question I understand that investing in indexes tracking Futures prices is most likely the only ...
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1answer
54 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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3answers
200 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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1answer
111 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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45 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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1answer
378 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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54 views

Do leverage pools force net negative outcomes? How are leveraged futures profits payed? [migrated]

Pre-note: Although I am trying to make this question general, in the case that there are any ambiguities, I would like to direct this question toward cryptocurrency futures trading platforms that ...
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2answers
135 views

What are the implications for institutional traders left holding a long WTI contract at expiry, unable to take delivery?

Given the historic drop in the front month WTI price today, I was wondering what the ramifications are for those professional traders who are left holding a long position. Note this problem won't ...
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1answer
67 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
884 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
177 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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28 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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1answer
172 views

Premium charges

Can anybody explain me please what Premium charges in CBOT Rulebook are - https://www.cmegroup.com/content/dam/cmegroup/rulebook/CBOT/II/14/14.pdf (section 14108 Premium charges)? I am somehow ...
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1answer
906 views

Logistics of Hedging INR investment with USD INR future

I am a beginner so please forgive any gaps in my understanding of Forex Futures. Based on RBI's decision earlier this year to let NRI's invest in rupee futures I want to propose a Currency Futures ...
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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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1answer
57 views

Will Bloomberg Composite Crude Oil Subindex rise when Crude oil prices rise?

Since the oil prices have plunged recently, I want to capitalize on this opportunity by investing in WisdomTree WTI Crude Oil ETC which tracks Bloomberg Composite Crude Oil Subindex. Question: 1) ...
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40 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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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
71 views

How much amount is tranferred in market to market settlement of futures?

The book by J.C. Hull gives a proof that if interest rate is constant, futures price is same as forward price (no-arbitrage price). In the proof outlined in the book, scenario of daily settlement is ...
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1answer
54 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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1answer
87 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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1answer
33 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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2answers
66 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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2answers
77 views

How well do Treasury bond Futures correlate to their hypothetical underlying bond?

How well do Treasury bond Futures correlate to their hypothetical underlying bond? If the price of the future is most tightly related to the current CTD, whose maturity varies widely, how can the ...
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1answer
27 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

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
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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2answers
109 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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479 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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117 views

how to find out at what price was future contract agreed upon?

A future contract means buying and selling at a specified price(call it agreement price) on specified date between 2 parties in future so If a stock's spot price is 1000 and future price is 1003,how ...
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3answers
2k views

Future price == strike price in the future contract?

Assume a future contract specifies that the holder of the contract will need to buy corn from XYZ farm at £100 per tonne, 1 tonne. So total deal value when realizing this contract is £100. We all ...
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2answers
2k views

Do the gain and loss during futures rollover each month will be even out in long run?

For example, I am using a buy and hold strategy for commodities futures. When spot month close to expiry, I rollover my contract to next month. However, the next month contract are usually wont equal ...
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2answers
104 views

Futures and forward contracts are very different from each other

** Assume two traders enter into a one-year (March 2019) Euro futures contract at a futures price of 1.1220 physically delivered. Regardless of the spot price on the settlement date, if the spot ...
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2answers
158 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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2answers
540 views

Why are profit/loss constantly adjusted in futures contracts if the goal is to protect against volatility?

In this article: http://www.investopedia.com/university/futures/futures2.asp?header_alt=g In the chapter "Profit and Losses-Cash Settlement", the author describes that profit and loss are governed by ...
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2answers
2k views

Futures contract month code

In futures contracts, the delivery month is reflected in the symbol name with a letter code. The letters for all 12 months in order are F, G, H, J, K, M, N, Q, U, V, X, Z. Where do these letters come ...
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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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3answers
7k views

How are futures contracts setup at an exchange?

I'm having a hard time wrapping my head around how the actual contracts are structured at an exchange. Here are my questions: If an exchange facilitates the trading of futures contracts and nobody ...
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40 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
61 views
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141 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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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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2answers
98 views

Crude Oil Futures Settlement

I am a bit confused about how futures contracts are settled. I know that usually contracts are either cash-settled or physically settled. For CME WTI crude oil futures contracts, how does settlement ...
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1answer
401 views

When entering a Futures contract, must the margin deposit be idle or can I profit from it?

Let's say I am trading in a Reg-T Margin account. When entering a Futures contract, a certain amount of cash is needed as collateral (usually 5%-15%). I'd like to see that collateral generate income ...
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4answers
836 views

Is there a way to buy raw oil today and sell it in 1 year time?

Is there a way to buy raw oil today and sell it in 1 year time? I would like to do so from the United Kingdom. EDIT: I mean buying shares of oil or whatever other form.. I just want to own it "...
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1answer
49 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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3answers
127 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
98 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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