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Questions tagged [futures]

For questions relating to futures contracts.

A futures contract is

a standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality for a price agreed upon today (the futures price or strike price) with delivery and payment occurring at a specified future date, the delivery date

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Futures on non-fungible goods

There are trade futures contracts on goods that are inherently heterogeneous, like live cattle, soybeans, or oil. When one trades a good like gold, all gold is pretty much the same, so all one needs to describe is the purity and the financial impact…
Superbest
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Do individual stocks have futures trading

What is the reason that futures exist on stock indices, but not on individual stocks? My understanding is that individual stocks have options, but not futures. Is there no market for futures on individual stocks?
Victor123
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Futures contract month code

In futures contracts, the delivery month is reflected in the symbol name with a letter code. The letters for all 12 months in order are F, G, H, J, K, M, N, Q, U, V, X, Z. Where do these letters come from? It seems they were picked somewhat…
Randomblue
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How does closing a futures position work?

Suppose A takes a long position by buying a December gold futures contract in January, and B at the same time takes a short position by selling the contract. The orders from A and B are matched and the agreed price for December gold is $1000. Assume…
IgNite
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Are buying and selling futures based on objective data?

I was thinking the other day that buying or selling futures is like gambling. It's based on no objective data and once you start pouring your money into it you can lose a lot... Are buying and selling futures based on objective data?
GUI Junkie
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Closing a futures position

I would like some explanation as to how a trader closes a futures position. If trader A (short) and B (long) are in a futures contract and trader B would like to close the position, he would have to go short and sell a similar contract. Does the…
Quaxton Hale
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How futures are sold, when they are first released?

When termed futures are released in the market, such as XBTU21 (Bitcoin futures for the 3rd quarter), how are they sold in the market? Stocks, for example, are sold through IPO when they are first released in the market. Do futures also go through…
Eiffelbear
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How do I interpret the price of Eurodollar futures?

For example, in this image, what does 99.4600 mean? I know the current EURUSD rate is about 1.38, so does it mean 99.4600*1.38 on Dec 2011? Any ideas?
user2654
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What does the price for a wheat futures contract represent?

I don't quite understand how the pricing for wheat futures works. Supposedly, for Chicago SRW, the contract is for 5000 bushels. So a call would allow me to buy 5000 bushels, but at what price? What is the strike price? When I look at the quotes for…
Five Bagger
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Futures margin and physical delivery

If I am long a future and opt to take physical delivery, do I need to pay only the difference between the futures price and total margin posted? E.g. If I buy a long contract worth 50000, and by expiry I have posted 2000 in initial margin and an…
user1506885
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Settlement time for euronext index futures

I have one simple question about the settlement time for Euronext index futures contracts. Here is a link to the specification for one such contract : https://derivatives.euronext.com/en/products/index-futures/FTI-DAMS/contract-specification I…
Alan
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Forward price, price of a forward contract, value of a forward contract

I am confused about the following terms: forward price price of a forward contract value of a forward contract The Hull textbook says that the forward price F0 for an investment that pays no income (such as a non-dividend paying stock) is given…
Jonas
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What are Inters/Intex/Supers?

The CME Group website, under the Margins tab, has a page titled "Inters/Intex/Supers". See here for example. What are Inters/Intex/Supers?
Randomblue
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confused about futures date versus tomorrow's value of underlying stock

A beginner question, I am puzzled about futures on the S&P500. I believe the futures contract arranges a price to purchase the underlying at fixed dates in the future (such as expiring in March); most often this date is not tomorrow, and is often…
unsupervised
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Who are the writers of index futures?

For futures, such as oil futures, I understand that the oil companies would be the writers of the oil futures to lock-in selling price. In this context, these oil companies have the underlying assets, namely oil and they can deliver when fulfill the…
Jim
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