 |
Trading Strategy
:
Futures Trading
|
What are futures?
A futures contract is an agreement between a buyer and a seller. It obligates the buyer to take possession of a specified amount of a given commodity or financial instrument and to do so by a given date. Likewise, it obligates the seller to deliver (sell) a specified amount of a given commodity or financial instrument by a given date. The specified date is the expiration date of the futures contract. Futures contracts lock in current prices, that is ,the prevailing prices at the time the contracts were bought or sold. This protects both the buyer and seller against the risk of price change between the moment of the contract transaction and the time of delivery (the expiration date). Futures contracts can be bought or sold at any time by anyone and they can change hands any number of times before expiration.
Investment Basics: How to trade in futures market?
Futures trades must be made through futures brokers, who operate both full-service and discount operations, and may be related to the stock brokerage that you already deal with. However, popular discount stockbrokers do not handle futures contracts.
Commodity Trading - Advantages and Disadvantages
Commodity futures markets allow commercial producers and commercial consumers to offset the risk of adverse future price movements in the commodities that they are selling or buying.
Commodities - The Next Big Wave of Fortune Building
Discover why commodities will catapult many to financial success. Also find out what the "China ATM" can do for you.
Articles Archive: [ 1] [ 2] [ 3] [ 4] [ 5] [ 6] [ 7] [ 8] [ 9] [ 10] |
|
|
|
Copyright ©2005 Funinusa.com