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Four things:
the commodity being sold
the amount of that commodity you'll get
the price per unit
and the settlement date
If you buy a CME copper futures contract...
the commodity is Grade 1 electrolytic copper cathodes, full plate or cut, conforming to ASTM specifications for this metal, and physically delivered
the amount is 25,000 pounds
the price is in cents per pound
and the settlement date depends on the contract you bought.
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Are futures contracts long term contracts?
They can be. If you look at the futures pricing, you'll see futures contracts that settle in 2013--and futures contracts that settle next month.
What is differences between currency future and currency future contracts?
"Futures" and "Futures contracts" are the same thing.
What are some of the standard characteristics of the business of corn futures trading?
Corn futures are contracts where the buyer agrees to have delivered to them from the seller a specific amount of corn at a set price at a date in the future.
Are Dow Jones Futures future contracts?
Yes. Dow Jones Futures are future contracts. This is because future contracts practically do not have an expiration date. It is also good because of the fact you can buy and sell single or bulk stock futures.
What Commodity futures contracts can be bought and sold on the open market for reasons?
Futures contracts remain valid even if the original parties to the contract sell the rights.
Where to find some individual stock futures?
Single-stock futures In finance, a single-stock futures is a type of futures contracts between two parties to exchange a specified number of stocks in company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange
What is futures trading?
Futures trading is the buying and selling of contracts which require you to buy or sell an item on a certain date for a certain price. Most (very close to all) futures contracts are written against commodities rather than stock.
What is an example of a derivative product?
Derivative instruments are classified as: Forward Contracts Futures Contracts Options Swaps
Explain the difference between forward contracts and futures contracts?
Forwards Contract: A forward contract is the simplest of the Derivative products. It is a mutual agreement between two parties, in which the buyer agrees to buy a quantity of an asset at a specific price from the seller at a future date. The Price of the contract does not change before delivery. These type of contracts are binding, which means both the buyer and seller must stay committed to the contract. This means they are bound to deliver or take delivery of the product on which the forward contract was agreed upon. Forwards contracts are very useful in hedging Futures Contract: A futures contract is an agreement to buy or sell an asset at a certain time in the future at a specific price. The Contractual terms of the futures contracts are very clear. The Futures market was designed to solve the shortcomings in the forwards contracts. Unlike forwards, futures are traded in organized exchanges. They also use a clearing house that provides the necessary protection to both the buyer and the seller. The price of the futures contract can change prior to delivery. Hence, both participants must settle daily price changes as per the contract values. Difference: Futures are traded in Organized Exchanges while Forwards are Over-The-Counter (OTC) traded
Which stock is better gold or silver for trading?
If you are a hedger or a speculator, gold and silver futures contracts offer a world trade at centralized exchanges, trading futures contracts offers more financial.
What are the difference between spot and futures market?
The spot market sells things for immediate, or "on the spot," delivery. The futures market lets you arrange to set the price of something now that you'll pay for and get later. Commodities users like the futures market because it lets them predict costs. If you make twinkles it's easier to calculate the price of them a year out if you know what sugar will cost a year out. The risk is sugar will be cheaper a year from now than your futures contract has it priced at; that's mitigated by the risk sugar will be really high a year from now and a box of twinkles that sells for $2.99 will have $2.98 worth of sugar in it if you didn't have a futures contract outstanding.
Are options contracts referred to as future contracts?
No. Options let you decide whether to go through with the transaction; futures require that you do.
