Futures trading
-
Intermarket Spreads: Understanding & Trading Strategies
What Is an Intermarket Spread? An intermarket spread is an arbitrage strategy for trading various correlated instruments in the commodity futures market. Using this method, a trader p
-
Understanding Customer Type Indicator (CTI) Codes in Futures Trading
What Are Customer Type Indicator (CTI) Codes? Customer type indicator codes (CTI codes) are part of a system that identifies futures exchange transactions made by brokers for different clients
-
Index Arbitrage: Strategies & Opportunities - [Your Company Name]
What Is Index Arbitrage? Index arbitrage is a trading strategy that attempts to profit from the price differences between two or more market indexes. This can be done in any number of ways, dep
-
Commodity Markets: Definition, Types & Trading
What Is a Commodity Market? A commodity market is a marketplace for buying, selling, and trading raw materials or primary products. Commodities are often split into two broad categories: har
-
Understanding Roll Yield in Futures Markets
What Is Roll Yield? Roll yield is the amount of return generated in the futures market after an investor rolls a short-term contract into a longer-term contract and profits from the convergence
-
Understanding the Relationship Between Commodity Prices and Currency Fluctuations
Professional forex traders have long known that trading currencies requires looking beyond the world of FX. Currencies are moved by many factors, including supply and demand, politics, interest
-
Commodity Futures for Risk Management: A Comprehensive Guide
Futures are a popular asset class used to hedge against risk. Strictly speaking, investment risk can never be completely eliminated, though its impact can be mitigated or passed on. Hedgin
-
Understanding Chocolate Price Fluctuations: Supply, Demand & More
At various points in history, the price of chocolate has fluctuated, but consumers were largely unaware. Most of us don’t notice if the price of our candy bar increases by a few cents
-
Backwardation Explained: Understanding Futures Market Dynamics
What Is Backwardation? Backwardation is when the current price, or spot price, of an underlying asset is higher than prices trading in the futures market. Key Takeaways Backwardation is
-
Understanding Physical Delivery in Derivatives Contracts
Physical delivery is a term in an options or futures contract which requires the actual underlying asset to be delivered upon the specified delivery date, rather than being traded out with offsettin
-
Series 7 License: Launch Your Investment Career
Several career paths are available to individuals seeking to become an investment professional. The traditional way to become licensed to trade or invest in securities (like stocks and bonds) is to
-
Chicago Board of Trade (CBOT): History, Commodities & Futures
What Is the Chicago Board of Trade (CBOT)? The Chicago Board of Trade (CBOT) is a commodity exchange established in 1848. The Chicago Board of Trade originally traded only agricultural commodit
-
Understanding Hundredweight (CWT): Definition & Usage
What Is a Hundredweight (CWT)? A hundredweight (CWT) is a unit of measurement used to define the quantities of certain commodities being bought and sold. It is used in some commodities trading
-
Understanding Point Balance: Futures Contract Profit/Loss Statements
What Is Point Balance? A point balance is a statement produced every month by futures brokers that shows the unrealized profits and losses on a clients open futures contracts. Key Takeaway
-
Contango Explained: Understanding Futures Price Dynamics
What Is Contango? Contango is a situation where the futures price of a commodity is higher than the spot price. Contango usually occurs when an asset price is expected to rise over time. That r
-
Futures vs. Options: Understanding the Key Advantages of Futures
Futures and options are both derivative instruments, which means they derive their value from an underlying asset or instrument. Both futures and options have their own advantages and disadvantages.
-
Introducing Brokers (IBs) in Futures Markets: A Comprehensive Guide
What Is an Introducing Broker? An introducing broker (IB) is a broker in the futures markets who has a direct relationship with a client, but delegates the work of the floor operation and trade
-
Crude Oil Price Drop in 2015: Factors & Analysis
The oil industry is driven by booms and busts. Prices typically rise during periods of global economic strength during which demand outpaces supply. Prices fall when the reverse is true, and supply
-
FIA: The Futures Industry Association - Definition & Role
What Is the Futures Industry Association (FIA)? The Futures Industry Association (FIA) is an international association of futures commission merchants, brokers, banks, and trading advisers oper
-
Intercontinental Exchange (ICE): Financial Markets & Exchanges
What Is the Intercontinental Exchange (ICE)? The Intercontinental Exchange (ICE) is an American company that owns and operates financial and commodity marketplaces and exchanges. It was founded
Futures trading
- Strategic Trading Prep: Analyzing Markets After Hours
- Renewable Energy Certificates (RECs): Understanding & Benefits
- Natural Gas Storage Report: EIA Data & Analysis
- Level II Quotes: A Comprehensive Guide for Traders
- Understanding Markets: Lessons from the Sneaker Resale Market
- Introducing Brokers (IBs) in Futures Markets: A Comprehensive Guide
-
Dividends vs. Interest: Understanding Investment IncomeDividends and interest are the two major types of income investors can receive. The distinction between dividends and interest is determined by what type or classification of investment pays the incom...
-
Secure Government Savings & Investment Options: A Guide(This page may contain affiliate links and we may earn fees from qualifying purchases at no additional cost to you. See our Disclosure for more info.) At a time when the U.S. stock market and curre...
-
Understanding and Completing a Stock Certificate: A Step-by-Step GuideA stock certificate is preprinted on the front with the name and address of the company issuing the stock. If you have a stock certificate, there are only a couple of instances that require you to fil...
-
Goal-Based Savings Programs: Choosing the Right Options for Your FutureYou've put aside $1,000 to save. But you're unsure where to stash your cash. Maybe you're trying to decide between a money market account and a mutual fund, looking to find a ...