Futures

Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as they involve specified and non-flexible parameters.Futures Trading ExplainedFutures contracts are negotiated at exchanges that act as a unified marketplace for both buyers and sellers. Buyers of contracts represent long position holders, while selling parties constitute short position holders.Both parties risk their counterparty walking away if the price goes against them. As such, the contract can involve both parties incurring a margin of the value of the contract with a mutually trusted third party.This margin can range substantially, depending on the current volatility of the market of the security being traded.Futures can be incredibly risky and are the textbook definition of market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price.If this prediction is correct, the trader will profit. If the prediction is incorrect there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding.For this reason, retail traders will seldom be afforded access to futures trading by brokers without first undergoing specific questions or account requirements.
Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as they involve specified and non-flexible parameters.Futures Trading ExplainedFutures contracts are negotiated at exchanges that act as a unified marketplace for both buyers and sellers. Buyers of contracts represent long position holders, while selling parties constitute short position holders.Both parties risk their counterparty walking away if the price goes against them. As such, the contract can involve both parties incurring a margin of the value of the contract with a mutually trusted third party.This margin can range substantially, depending on the current volatility of the market of the security being traded.Futures can be incredibly risky and are the textbook definition of market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price.If this prediction is correct, the trader will profit. If the prediction is incorrect there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding.For this reason, retail traders will seldom be afforded access to futures trading by brokers without first undergoing specific questions or account requirements.

Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future.

Of note, the parties are not known to each other.

These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.

Futures also adhere to a delivery date, which specifies the date of delivery and payment.

Relative to other forms of investing futures are much more complex, as they involve specified and non-flexible parameters.

Futures Trading Explained

Futures contracts are negotiated at exchanges that act as a unified marketplace for both buyers and sellers.

Buyers of contracts represent long position holders, while selling parties constitute short position holders.

Both parties risk their counterparty walking away if the price goes against them.

As such, the contract can involve both parties incurring a margin of the value of the contract with a mutually trusted third party.

This margin can range substantially, depending on the current volatility of the market of the security being traded.

Futures can be incredibly risky and are the textbook definition of market speculation.

A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price.

If this prediction is correct, the trader will profit. If the prediction is incorrect there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding.

For this reason, retail traders will seldom be afforded access to futures trading by brokers without first undergoing specific questions or account requirements.

Technical Analysis

The CHF is the strongest and the GBP is the weakest as the NA session begins

forex

The CHF is the strongest and the GBP is the weakest as the NA session begins

  • The USD is mixed
Greg Michalowski
Greg Michalowski
Thursday, 15/09/2022 | 12:17 GMT-0
15/09/2022 | 12:17 GMT-0
Central Banks

Implied odds of a 100 bps FOMC hike near 50/50

Implied odds of a 100 bps FOMC hike near 50/50

  • Implied odds hit 47%
Adam Button
Adam Button
Tuesday, 13/09/2022 | 17:46 GMT-0
13/09/2022 | 17:46 GMT-0
News

US major indices are set to open higher

US major indices are set to open higher

  • Traders returning from the Labor Day holiday
Greg Michalowski
Greg Michalowski
Tuesday, 06/09/2022 | 13:20 GMT-0
06/09/2022 | 13:20 GMT-0
Technical Analysis

Natural gas futures (NATGAS) technical analysis and trade idea (short)

Natural gas technical analysis

Natural gas futures (NATGAS) technical analysis and trade idea (short)

  • The recent failed breakout up, and the reward vs risk potential here, enables a short trade idea on Natural gas, IMHO
Itai Levitan
Itai Levitan
Monday, 29/08/2022 | 10:58 GMT-0
29/08/2022 | 10:58 GMT-0
Technical Analysis

Crypto technical analysis: Interesting spot to buy Ethereum here (updated)

Ethereum technical analysis

Crypto technical analysis: Interesting spot to buy Ethereum here (updated)

  • Opinion: ETHUSD has previously broken out of the bull flag, and now retested. A contrarian long, against the recent bearish sentiment, is an interesting opportunity.
Itai Levitan
Itai Levitan
Sunday, 21/08/2022 | 20:26 GMT-0
21/08/2022 | 20:26 GMT-0