Despite its relatively short history, the energy futures contract has become an essential part of the modern financial system, thanks to its efficiency in controlling volatility in the price of ...
Take a look at some basic examples of hedging in the futures market, as well as the return prospects and risks.
A futures contract legally obligates an investor to buy or sell a specific security or commodity at a predetermined price and time, and it’s facilitated on the futures exchange. When the future ...
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Gordon Scott has been an active investor and technical analyst or 20+ years. He ...
The "spot price" is the current price of an asset with payment being immediate and the buyer taking delivery immediately or within a few days. Spot price is determined by supply and demand and most ...
Oil futures are financial contracts that allow participants to buy or sell a specific quantity of oil at a predetermined price on a future date. These contracts serve as an agreement between the buyer ...
Options on futures are a kind of contract that gives an investor the right to buy or sell futures at a specific price in a specific period. Options on futures, therefore, layer the "optionality" of ...
For retirees (or soon-to-be retirees), futures contracts can offer an additional avenue for diversification and hedging opportunities, helping to manage market volatility. However, there are a few ...