Questions tagged [futures]

For questions relating to futures contracts.

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7
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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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1answer
10k views

Is the delivery price of a forward contract different from the forward price?

Is there any difference between the delivery price and the forward price of a forward contract? From the definition Investopedia gives of forward price and delivery price, they appear to be the same. ...
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2answers
5k views

How does spot-futures arbitrage work in the gold market?

At the time of writing: According to Kitco, the spot price for gold is about $1240 per ounce. According to CME Group, futures contracts are above that price for many months ahead. Why couldn't I buy ...
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2answers
3k views

How do freight derivatives like Forward Freight Agreements (FFAs) work?

Re: http://www.balticexchange.com/default.asp?action=article&ID=35 Freight derivatives provide a means of hedging exposure to freight market risk through the trading of specified time charter ...
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2answers
5k views

Is there a Yahoo Finance ticker for NYMEX Crude Oil Front Month?

I see tickers like on specific monthly futures like CLN13.NYM, CLQ13.NYM, etc. But is there on Yahoo Finance something like "CL1.NYM", i.e. ticker that always is pointing on the front month future. ...
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4answers
1k views

Why trade futures if you have options?

This article explains the difference between futures and options. It seems a futures contract is an obligation, while an option is a right (not an obligation). If this is true, why would anybody ever ...
4
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3answers
851 views

What do these numbers mean? (futures)

The S&P closed at 1588.85 on April 12th. On www.bloomberg.com/markets/stocks/futures/ For stock futures, it gives the following data: > Index Future | Future Date | Last S&P ...
3
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1answer
109 views

10-Year Treasury Future Quotes

The CBOE lists the current price for a June 2013 10-Year Treasury future as 132'155. The contract specifications state that the price quote is Points ($1,000) and halves of 1/32 of a point. Does ...
2
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1answer
521 views

How is the price of VXX determined?

I'm trying to understand how VXX works (the prospectus on Barclay's Ipath). It says that it has a rolling position in futures (1 month and 2 month). Does that mean that it buys and sells contracts ...
1
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1answer
391 views

Futures initial margin and maintenance margin

I just a had a quick question about margin in a Futures contract. Suppose, that I have a Futures contract that requires an initial margin of $1000 and a maintenance margin of $500. Suppose that after ...
4
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1answer
6k views

Calculating the profit earned from a leveraged futures contract

How do we calculate the profit/loss of Futures contract? For example, If I had a Futures contract that had $10 000 as the underlying, it had $1000 margin and the Futures contract itself was worth $3. ...
0
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1answer
717 views

Evidence for/against negative correlation between commodity futures, stocks

I've heard that stocks and futures are negatively correlated over the medium term - e.g. that if stocks experience a brief rise, futures tend to fall, and vice versa, but they move together in the ...
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1answer
4k views

What is forward selling in terms of exchange rates?

We are selling some custom made products which we need to buy materials for in different currencies e.g. 100 USD + 50 EUR + 20 SGD, and we sell the products in a currency that our customer prefers e.g....
2
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1answer
159 views

How does investing in commodities/futures vary from stocks?

I understand the basic concept behind investing in a company via stock purchases: you get some minuscule percentage of the company, and get to benefit from that ownership. Investing in commodities (...
7
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1answer
85 views

FTSE exposure in US Exchanges

Is there a FTSE 100 index futures contract that trades on the US exchanges? Thanks I think there is an ETF but I am looking for futures, mainly for charting purposes.
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2answers
219 views

Hedging against rising oil and gas prices for private households?

Inspired by this article Hedging Against Rising Heating Oil Prices using Heating Oil Futures, I wonder whether hedging against rising oil and gas prices makes sense for private households, too? If so, ...
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2answers
327 views

Futures price of Eurodollar futures

From Wikipedia: The Eurodollar futures contract refers to the financial futures contract based upon these deposits, traded at the Chicago Mercantile Exchange (CME). ... CME Eurodollar ...
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3answers
11k views

Do futures have premium in the price, just as options do?

Looking at Wikipedia's the pricing of futures, I wonder if entering into a futures contract requires one to pay premium just as entering into an option contract? In other words, is the premium of a ...
2
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3answers
4k views

Search index futures in Yahoo Finance or Google Finance

I was wondering if index futures and options information are available in Yahoo/Google Finance. Say futures/options for Dow Jones Industrial Average.
2
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1answer
322 views

How do I interpret the price of Eurodollar futures?

For example, in this image, what does 99.4600 mean? I know the current EURUSD rate is about 1.38, so does it mean 99.4600*1.38 on Dec 2011? Any ideas?
2
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2answers
94 views

Trading when you work for a market participant

I work in the IT department at a Futures FCM. While I'm aware that there are insider trading rules with respect to our company stock, I'm still not clear on what it means for my own participation in ...
4
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1answer
99 views

How prevalent are futures in the agricultural industry?

I realize that many agricultural companies sell their crops or livestock via futures contracts to manage the risks inherent to their industry. It seems to me that this kind of activity would be ...
4
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2answers
2k views

How far into the future is a stock future? How do stock futures work?

I have been looking at the markets recently and most of the time, I see similar articles on how the market is going to do depending on how futures did. I am not that familiar with futures, but how ...
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3answers
1k views

How do you go about buying currency futures for foreign currencies?

I was interested in buying currency futures for some foreign currencies. How do you go about getting these? I am looking for 6 to 12 month futures.
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4answers
26k views

How much would it cost me to buy one gold futures contract on Comex?

I am looking at gold futures prices: http://www.cmegroup.com/trading/metals/precious/gold.html I cannot figure out how much one futures contract of gold would cost me to buy if I were to buy it from ...
4
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2answers
604 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 ...
3
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4answers
174 views

Are buying and selling futures based on objective data?

I was thinking the other day that buying or selling futures is like gambling. It's based on no objective data and once you start pouring your money into it you can lose a lot... Are buying and ...
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3answers
296 views

Does a high demand for long commodities Futures push up the underlying spot price?

Let's take a commodity as an example - oil. Suppose there is suddenly a high demand for a 30-day oil futures contract. Will that push up the spot price on oil? I would guess that this would affect ...
5
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1answer
396 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 ...
7
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2answers
477 views

What are futures and how are they different from options?

As a form of investment there are contracts to buy commodities at a specific time in the future or at a specific price. How is this different from an option to buy a share?

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