Investing Derivatives - Sort By: Oldest
A future is the obligation to buy a certain good, at a certain price at a certain time in the future. Futures can be used to hedge costs of goods like oil, gold, or soy b...
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An option is the right, but not the obligation, to buy or sell a good at a specific price at a specific time in the future. Unlike holders of futures contracts, someone h...
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Like any other broker, a futures broker is simply a middle man between you and another futures trader. A futures broker accepts your buy or sell order and finds someone ...
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Futures and options are both a type of derivative. That means simply that their value derives from some other asset. Eg stock, commodity, bond, currency etc.
Futures a...
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A call option contract gives you the right to buy 100 shares of stock (or some other asset) at a certain price for a certain amount of time. Call options are a way of tak...
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A put option contract gives you the right to sell 100 shares of stock (or some other asset) at a certain price for a certain amount of time. Put options are a way of taki...
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Options always expire at the end of the 3rd Friday of expiration month. The vast majority of options expire worthless. Since options give you the right, but not the oblig...
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I've seen quite a few explanations how strike prices work, and they all seem to me to be overly complex and complicating. A strike price is simply the price at which you ...
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A derivative is just something who's value derives from something else. For example, lets say you have a treasure map that shows the exact location of a $10 million treas...
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Oil futures give you the right to buy or sell a certain amount of oil for a certain price, at a certain amount of time in the future. For example, the full size NYMEX oil...
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A future contract obligates the holder to buy or sell a certain good at a certain price for a certain amount of time in the future. This differs from an option contract w...
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Futures allow you to buy or sell a certain good at a certain price for a certain amount of time in the future. Futures of the DJIA allow you to buy or sell shares of the ...
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A gold future is essentially a commitment to buy or sell an agreed upon amount of gold on a specified date in the future. If you believe gold will rise to a certain amoun...
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Financial futures usually refer to bond futures. For example, the ZN is a future on the 10 year treasury bond.
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There are many, many futures brokers available to those who want to try their h and and futures trading for hedging or speculating. The futures market is subject to vario...
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Futures expire on the third friday on their respective expiration months. Since the "front month" contract is the most heavily traded (the contract closest to expiration ...
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