Questions tagged [futures]

For questions relating to futures contracts.

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5
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1answer
192 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.
3
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2answers
1k views

What are the ways to invest in cobalt, lithium, and nickel?

How to invest in metals like cobalt, lithium, and nickel? I am not interested in investing in firms that are mining them but in investing in metals directly (via futures or other instruments). ...
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3answers
349 views

Confusion with settlement time in stocks, forex, futures etc

I've been trading cryptocurrencies for a little while now, and recently I have been looking into stocks, futures and forex etc. During my research, I have run into a subject called settlement times. I ...
3
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1answer
131 views

Tax reform: is the futures 60/40 tax treatment the same?

In 2018 and beyond will futures contracts retain the favorable 60/40 tax treatment? Or has that been modified/repealed
3
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3answers
473 views

Several questions on Bitcoin futures

I have been reading news on crypto-currencies. As a developer, I understand well how Bitcoin works. I also have a basic understanding of finance in general and stocks in particular. I understand how ...
3
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4answers
250 views

Can I use stock futures as an indicator for price movement?

I'm not too familiar with futures. I think it's where people bet on where a stock (or other instrument) will go (either up or down). I'm wondering, is there a way for me to see for example for a ...
1
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1answer
725 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 ...
5
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1answer
227 views

Why do commodities futures prices have “-” in them

I'm trying to understand how commodities futures are priced. I was looking at a chart of ZSF18, and the price is 990-4s. What does that mean?
1
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1answer
198 views

Confused about eurodollar futures

A eurodollar futures contract is a cash-settled futures contract based on a Eurodollar Time Deposit and having a principal value of USD $1,000,000 with a 3-month maturity. Suppose that a a bank ...
2
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1answer
69 views

Variation margin on closed position

I would appreciate an explanation for the following problem: Trader A is long a futures position worth $10 and Trader B is the short counterparty. Since it is exchange-traded the contract is cleared ...
0
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1answer
154 views

Options on the E-mini S&P 500 Futures at the CME: what's the expiry date of the underlying future?

The Chicago Mercantile Exchange (CME) has a variety of options on the E-mini S&P 500 (E1A,E2A,E3A,E4A,E5A,E1C,E2C,E3C,E4C,E5C,EW, EW1,EW2,EW3,EW4, and ES). Looking at the contract ...
0
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1answer
176 views

How is Shooting Star treated when a stock is in uptrend

So I've started learning Candlesticks and I stumbled on Inverted Hammer i.e. shooting star. I was wondering what would I do with it when it appears in a uptrend stock.
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2answers
726 views

Black scholes, futures, and American vs. European options

After having taken a look at this question about American and European options I was under the impression that the main difference between American and European options in Black Scholes pricing was ...
0
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1answer
34 views

How Emini/Minifuture price is set against its underlaying instrument?

I'm tracking tick bid/ask price of an instrument MINI L OMX AVA 191, that is every change in the bid/ask price of this Emini or what is called in Sweden "Mini futures", against its underlying ...
2
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2answers
248 views

Futures and Bonds Pricing and Contract Terms

What do the listed futures price, say, here, actually mean? I am confused because my understanding of futures is that any two people can enter into a contract at any price with any delivery date. ...
0
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1answer
453 views

What price side am I paying when shorting stock / future

I know that question was asked here numerous times but I don't think it was ever answered clearly. When I'm short selling a security (stock/future...) I pay a bid price (with a MKT order - when I ...
0
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2answers
90 views

Trader Fostering Program on Futures Day Trading [closed]

I'm an Engineer, specialized in signal processing. Caught interest in the market so started reading "The intelligent Investor" and had a bunch of books queued for reading before deciding to commit ...
-1
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2answers
203 views

Is there any flaw in this investment scheme?

I seem to have figured out a way to lose as little as possible while having the potential to cash in big: Say there is this futures/stocks/commodity, let's call it LOOT. I can borrow LOOT from an ...
0
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1answer
132 views

Why is there an abnormality in farthest month's future contract?

I recently started trading futures and I have noticed that many-a-times the farthest month's future contract is priced at an insanely cheap rate. Thus, anyone can buy it and be rich. For example ...
0
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1answer
47 views

comex gold futures contracts with two brokers

Can I close a gold futures contract for sale with one broker, with a purchase contract with another broker?
5
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1answer
81 views

How does contango actually affect the price of an ETF?

How does contango actually affect the price an ETF trades at? For example, take the Unites States Oil Fund (USO) that is supposed to track the price for West Texas Intermediate (WTI) crude. It is ...
2
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2answers
115 views

How to continuously plot futures data

Since futures trade on a contract by contract basis, how can you plot the price over an extended period of time? As a reference I have included a plot of VX futures (VIX CBOE volatility index) from ...
13
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2answers
3k views

How are they earning money in the movie “Trading Places”?

I was watching a movie called "Trading Places" and it's about stocks. I need help because I don't understand stocks yet. A stock was for 142-146 that was the highest then when it reached the highest a ...
0
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1answer
947 views

What do stock market index future bid/ask quotes mean?

I see bid and ask quotes for stock market index futures (e.g. the S&P500 mini future contract). However, I've just read from multiple sources that there is no cost to enter into a futures contract....
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1answer
322 views

How did this author lose so much money? [duplicate]

Recently I have been reading a book called Market Wizards. The author talked about his own experience: "I had done a very detailed analysis of the cotton market throughout the entire post- World ...
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4answers
10k 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 ...
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1answer
92 views

Nasdaq Composite Futures?

When the financial press talks about Nasdaq futures, they are talking about Nasdaq 100 Futures. How come they do not use the Nasdaq Composite Futures?
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1answer
271 views

Executing an options on futures before delivery date

I have been studying a bit about options and futures. Specifically I want to trade futures of gold and silver (they trade at NYMEX), but to lower risks and take advantage of leverage I have been ...
4
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1answer
496 views

Futures on non-fungible goods

There are trade futures contracts on goods that are inherently heterogeneous, like live cattle, soybeans, or oil. When one trades a good like gold, all gold is pretty much the same, so all one needs ...
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3answers
4k views

Is it practical to take actual delivery on a futures contract, and what is the process?

Usually people trade futures speculatively, ie. they buy and sell contracts without actually delivering the goods. However, technically the futures are contracts for delivery of a certain amount of ...
1
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1answer
613 views

What is margin in F&O trading?

I am new in trading and want to trade in Futures. I used the span calculator for that and get the following result : Buy 1 lot Sell 1 lot Initial margin 31,225 30,...
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1answer
344 views

Futures margin and physical delivery

If I am long a future and opt to take physical delivery, do I need to pay only the difference between the futures price and total margin posted? E.g. If I buy a long contract worth 50000, and by ...
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1answer
428 views

How to find leverage for futures [closed]

In my understanding, leverage is the risk we take for our investment. That is highly leveraged instruments have high risk and high potential reward. But how can we calculate leverage of futures? ...
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2answers
188 views

Is contango a contradiction?

If a market is in contango the futures curve slopes upward as forward prices are higher than today. It is also true that prices must fall as they converge toward the spot price at the time of maturity ...
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1answer
446 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 ...
0
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1answer
90 views

What are p_ask and q_ask columns in .csv trades log file?

I have a .csv file that is essentially a log of trades of futures contracts. I have the column names but can't figure out what some of them are. There are the obvious "date", "time", "contract" ...
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2answers
805 views

Anyone know if IG or Plus500 are scams or not? [closed]

I have been doing some research into online trading and came across 2 platforms that are pretty good and user friendly. http://www.IG.com and http://www.plus500.com I have read quite a lot of reviews ...
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2answers
795 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 ...
1
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1answer
64 views

Tax laws pertaining to day trading of agricultural futures

What are the tax laws regarding the day trading of agriculture futures? I realize these contract are classified as 1256 contracts, and the type of activity I am curious about would definitely fall ...
0
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1answer
55 views

how an order is matched after a fill?

Assuming I got a fill for an order to sell at a price ES 2018.00 but price is still at 2017.00-2017.25. What are the factor that makes the prices beetween 2017.25 and my order being filled also? And ...
1
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1answer
752 views

What can one derive, when a near month Index Futures contract price is trading lower than index spot price?

Usually Futures contract price for near month, next month and far month is higher than spot price. Yesterday in Nifty I came across a case wherein March 29-oct-2015 contract was trading at 8268.70 and ...
1
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1answer
117 views

Settlement time for euronext index futures

I have one simple question about the settlement time for Euronext index futures contracts. Here is a link to the specification for one such contract : https://derivatives.euronext.com/en/products/...
3
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1answer
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 ...
2
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3answers
6k views

Forward price, price of a forward contract, value of a forward contract

I am confused about the following terms: forward price price of a forward contract value of a forward contract The Hull textbook says that the forward price F0 for an investment that pays no income (...
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1answer
4k views

How can I calculate the exposure of future option? [closed]

quantity * delta * index quantity * delta * (index - strike) quantity * delta * min(index - strike, 0)
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3answers
93 views

BRENT/WTI Oil Contract Futures

Every contract that is about to expire always seems to be more expensive to buy than contracts expiring at a later date. For instance, the Sep15 contract is currently priced higher than the DEC15 ...
10
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2answers
5k views

Why do futures traders write months in a strange way?

I was reading up a bit on futures and found that futures clearing merchants write months in a very unexpected way: Month Month Code January F February G March H April J May ...
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2answers
287 views

Why do requirements after a margin call vary?

I have seen in various places that a margin call requires restoring an account up to The initial margin level (or having this done for you) or The maintenance margin level. As best as I can tell, ...
12
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2answers
2k views

What does it mean to invest in potatoes?

There is an amusing thread on Reddit where people discuss what they would do with an unlimited supply of potatoes: http://www.reddit.com/r/AskReddit/comments/37yawp/...
3
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1answer
5k 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 ...