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5

I agree with the other answers recommending a low ER index fund, purchased through a low-cost well-respected (not "discount"!) brokerage, preferably one with a good selection of commission-free ETFs. If you think think it likely you will retire in the US, you can take advantage of your employer's retirement plan. Laws make it really expensive to move ...


3

Buy an index fund. This ticks both the boxes. You don't need to pay much attention to it, because it's an index fund, and historically the rate of return is likely to be better than saving all the money in a bank. Pick an index fund. Choose something that tacks as much of the market as possible (so you don't have to pay attention to the investment). ...


3

A proper answer to this would require knowing about your short and long term financial goals. Will you need this money to spend on something such as a house in the next 5-10 years? Do you plan to maximize your 403(b) contributions from your new salary or would your basic expenses be too high to manage that? Not knowing those, the best advice you can get is ...


3

The question doesn't ask for long-term growth set against fluctuation and volatility but asks for something better than a bank. Well, there are several internet banks that the current bank account can link-to that pay almost as much as a three-month Treasury Bill. Also, there are Treasury Direct accounts that link to the current bank account with non-hedge-...


3

Open interest represents the number of contracts that exist on any given day. There are 4 scenarios: (1) If both parties to a trade are initiating a new position (one new buyer and one new seller) then open interest will increase by one contract. (2) If both traders are closing an existing or old position (one previous buyer and one previous seller) ...


3

Futures are a derivative market and are zero-sum (for every long futures contract, there is a short futures contract). Therefore, the $200 profit comes from a $200 loss by the person who held the long side of that contract. The idea of borrowing may be a red herring. If you sell a future, you don't exactly borrow the underlying (here, IBM shares), but you ...


2

A futures contract trades at many different prices over its lifetime. Each of those prices corresponds to a different "agreement" to buy and sell the underlying. Futures trading requires margin funds (collateral) from both parties to back up the "agreement". Futures are marked to market: If the market moves against your position, you have to put up more ...


1

An option contract is an agreement between two parties to buy/sell a predetermined number of shares of an underlying security at a given price (strike price) by a certain date (expiration). Call buyers have the right to buy the security at the contract terms and call sellers have the obligation to sell the security at the strike price. Put buyers ...


1

I no longer know much about futures but open interest is the same in both the futures and options markets. Open interest represents the number of contracts that exist on any given day. There are 4 scenarios: (1) BTO and STO = Both parties are initiating a new position (one new buyer and one new seller) so open interest increases by one contract (2) ...


1

"Buyer of a futures contract" is a bit misleading, although I realize this is the standard phrasing. You are not actually "buying" a contract - you are entering into a contract in which you are the buyer of a commodity. The other party in that contract is the futures exchange which also creates a contract between them and the "seller". If you are buying to ...


1

There are two purposes for futures contracts: speculation reduction of price risk (locking in a price) Unless you have specific knowledge that the market does not have, futures are not about making a profit. They are about locking in a price in the future, eliminating price risk. If you need to buy a product in 6 months and want to lock in a price, then ...


1

You're asking about this scenario: The producer buys a put option for something he produces, with the put option priced at $p and the product priced at $q. The counter-party of the put option closes the position. Who does the producer now sell to? Normally, closing a derivative position leads to two positions, not zero: As we discussed previously, when ...


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What would happen if the counter party closes their position prior to the expiry date? In an orderly market (i.e. real futures, not some future like contracts), the counter party is not the speculator, it is the EXCHANGE. If the speculator closes his position, he closes it against another buyer/seller factually, but legally he closes his contract with the ...


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For a list of US exchanges, google "List of futures exchanges" For a list of contract symbols, google "Futures contracts symbols"


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Futures Futures commit you to purchasing or selling a particular contract at some point in the future. The typical example is a grain farmer expects to grow a certain amount of grain over the coming year, so sells a grain future requiring delivery at the end of the year, locking in the price. If the market changes in the meantime, his future gives him ...


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