Commodity Prices / Quotes & Commodity Charts - FreeSpeculators typically fall into three categories: position traders, day traders, and swing traders ( swing trading ), though many hybrid types and unique styles exist.Expiry (or Expiration in the U.S.) is the time and the day that a particular delivery month of a futures contract stops trading, as well as the final settlement price for that contract.
Commodity News at Economic Times, Commodity Market Data - Latest Gold rate in India, gold price in rupees, news on Commodity Market, Silver price charts, Commodity.For example, if a trader earns 10% on margin in two months, that would be about 77% annualized.A futures contract might also opt to settle against an index based on trade in a related spot market.The counterparty for delivery on a futures contract is chosen by the clearing house.Word Origin and History for futures. an agreed price at a set date in the future.The Nymex crude futures contract uses this method of settlement upon expiration.In finance, a futures contract (more colloquially, futures ) is a standardized forward contract which can be easily traded between parties other than the two initial parties to the contract.
In the case of physical delivery, the forward contract specifies to whom to make the delivery.The source for financial, economic, and alternative datasets, serving investment professionals.Futures Commission Merchants are responsible for overseeing customer margin accounts.Note that, due to the path dependence of funding, a futures contract is not, strictly speaking, a European-style derivative: the total gain or loss of the trade depends not only on the value of the underlying asset at expiry, but also on the path of prices on the way.Initial margin is the equity required to initiate a futures position.
Although contract trading began with traditional commodities such as grains, meat and livestock, exchange trading has expanded to include metals, energy, currency and currency indexes, equities and equity indexes, government interest rates and private interest rates.The first futures contracts were negotiated for agricultural commodities, and later futures contracts were negotiated for natural resources such as oil.
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With an exchange-traded future, the clearing house interposes itself on every trade.Margin requirements are waived or reduced in some cases for hedgers who have physical ownership of the covered commodity or spread traders who have offsetting contracts balancing the position.We define the forward price to be the strike K such that the contract has 0 value at the present time.This is an exciting time for arbitrage desks, which try to make quick profits during the short period (perhaps 30 minutes) during which the underlying cash price and the futures price sometimes struggle to converge.
With this pricing rule, a speculator is expected to break even when the futures market fairly prices the deliverable commodity.Reuters.com for the latest commodities news. X. Edition: United States. COMMODITY FUTURES.Get the latest commodity trading prices for oil, gold, silver, copper and more on the U.S. commodities market and exchange at CNNMoney.Option sellers are generally seen as taking on more risk because they are contractually obligated to take the opposite futures position if the options buyer exercises their right to the futures position specified in the option.
Commodity forwards and swaps | Futures & Options WorldFor information on futures markets in specific underlying commodity markets, follow the links.When the deliverable asset exists in plentiful supply, or may be freely created, then the price of a futures contract is determined via arbitrage arguments.
More than ever before, commodity trading advisors, introducing brokers, futures commission merchants.