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 JPY is the strongest and the AUD is the weakest as the NA session begins

Forex

The JPY is the strongest and the AUD is the weakest as the NA session begins

  • The risk off flows dominate
Greg Michalowski
Greg Michalowski
Thursday, 12/05/2022 | 12:16 GMT-0
12/05/2022 | 12:16 GMT-0
Technical Analysis

EURUSD moves lower and back below 100/200 hour MAs after CPI data

EURUSD

EURUSD moves lower and back below 100/200 hour MAs after CPI data

  • Moves toward 1.0500 and swing area between 1.0505 to 1.0509
Greg Michalowski
Greg Michalowski
Wednesday, 11/05/2022 | 12:51 GMT-0
11/05/2022 | 12:51 GMT-0
News

Push and pull sees dollar little changed on the day

Push and pull sees dollar little changed on the day

  • Dollar recovers back some ground after early gains were reversed
Justin Low
Justin Low
Tuesday, 10/05/2022 | 08:16 GMT-0
10/05/2022 | 08:16 GMT-0
Central Banks

Fedspeak is on the agenda today

Fedspeak is on the agenda today

  • Will policymakers push back
Adam Button
Adam Button
Friday, 06/05/2022 | 13:05 GMT-0
06/05/2022 | 13:05 GMT-0
News

Dollar gains wiped on back and forth flows in European morning trade

Dollar gains wiped on back and forth flows in European morning trade

  • Dollar sees its earlier gains more or less completely erased
Justin Low
Justin Low
Friday, 06/05/2022 | 08:37 GMT-0
06/05/2022 | 08:37 GMT-0