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Spot–future parity Future Price as of Today = Index Price as of Today + Risk Free Return (Treasury Bond Yield) - Expected Dividend until Expiry Therefore, the 0.03% difference for June contract is (Treasury Bond Yield - Expected Dividend), which is negative, meaning that Expected Dividend > Treasury Bond Yield. To determine by youself whether ES is ...


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This is a Contract for Difference (CFD).


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USO was rolling into the upcoming front-month oil future and out of the current front-month oil future on a regular schedule. That's not a shock to the market. Then on April 30, 2020 USO had a new schedule such that they were staying out of the front-month completely. But since the July contract became the front-month on May 20, then an update from USO is ...


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It is highly unlikely you will trading crude to 'settle' the future's contract. First, see this calendar for WTI Crude Oil on CME. If this isn't the future you are trading, then you should find the similar calendar for that contract; which may be traded on a different exchange. I'm going to use the Jul 2020 row for my examples. Also, I assume you purchase 1 ...


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Q: Can someone explain me the mechanism behind rolling future contracts and contango influence of my investment when buying a commodity ETF (like USO)? I think you will find the ETF does not move on contract rollover: it just switches to track the new contract. Suppose the May contract ends at $20 and your ETF is tracking at $5, if on rollover the June ...


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I think it is helpful to look at it from a prospective futures contract seller's perspective: if the oil price today is $20, why wouldn't they sell a futures contract for $21? To make a risk-free profit, the seller would need to buy the oil today and store it until the futures contract expires. If the storage cost is high, this does not work unless the ...


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You could get a an account with a broker and just sell the futures contract. Close out your position at the end of the day. If you sell a futures contract at 1000 and it drops to 500, you would make the same money if you sell the same contract at 250 and it drops to -250. Note that, you don't 'short' a future, you just sell it. Shorting a stock requires ...


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Rollover in futures trading (buying or selling your position in a soon to expire contract and creating the same position in a longer contract) is usually driven by the need to either avoid delivery / final settlement processes, or the desire to avoid non-standard trading activity as the contract nears either the first notice date or the last trading date. ...


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You can see the details on the "contract specs" tab of the CME quotes page, but there is one misunderstanding that must be cleared up. You don't choose the price of a futures contract - you enter into a contract at whatever the "market "price" for that contract is. So when you see a quote of 2,870 "points" for S%P 500 futures expiring in JUN 2020, you are ...


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