- What is a Futures Contract?
To understand what we mean by a futures contract, let’s meet trader Bob (a buyer), who wants to purchase a widget today because he believes that the widget will have more value in the future.
- Behind the commodity prices
The 1970's are a little more complicated. The decade started with the end of the Vietnam War, but wartime spending was not the dominant feature of the decade. The force behind the commodity price explosion in this decade had more to do with the economic theories of John Maynard Keynes. Observing the Great Depression, Keynes concluded that the way out of economic stagnation was for the federal government to increase public spending and keep interest rates low.
- Futures Basics - Option
There are two basic types of options: call option & put option. A Call Option gives the buyer the right, but not the obligation, to purchase a particular futures contract at a specific price anytime during the life of the option. A Put Option gives the buyer the right, but not the obligation, to sell a particular futures contract at a specific price anytime during the life of the option.
- How To Make Money In Commodity Futures
In the world of commodity futures, there are two kinds of analyses, fundamental and technical. Fundamental analysis looks at supply and demand figures, production estimates, consumption trends, etc... Technical analysis describes a wide variety of approaches, most of which involve charts and focus on the movement of prices.
- Funds of hedge funds
Historically, hedge funds have been offered as unregistered securities that, because of the risks they posed, were only available to a limited number of wealthy, financially sophisticated investors.
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