What are the futures for warehouses?

Futures shares are contracts agreed between the buyer and seller of commodities, such as soybeans or corn or financial instruments such as US Treasury or Gold, for delivery at the future date. These contracts are legally binding agreements between the buyer and the seller who have committed the conditions of the agreement. Most of the terms in the stock of future contracts are standardized or set before any agreement. Traders who are active on the market are aware of these standards before purchasing or selling a contract. The life of the contract is also standardized by the fact that the Futures contract expires in a particular month and year. The only real variable on stock futures is the price where the buyer and the seller agree to complete the transaction.ND Exit position quite easily, creating liquidity on the market. For example, the buyer of contracts may decide to compensate for the current long or purchase, the position with the sale before the expiry of the contract. This is called collateral. A trader can do this, protrO they know when this date will be.

The seller may decide to ensure his position with the purchase before the futures contract. Less than 3% of stock futures contracts are in fact concluded at the expiry of the contract. Providing activities in Futures markets, because futures on stocks provide merchants a way to transfer the risk.

For a small percentage of contracts that are held until the expiry date, the agreements are settled in one of the two ways. Either physical delivery or the settlement of the contract is settled. Agreements on some futures at the share lead to physical delivery, and the buyer receives a product that has been closed for. This delivery could be in the form of a commodity or financial instrument.

Other contracts are resolved by settling cash. In this case, depending on the price that financial security concludes in the date of the contract, the trader receives hotOverness. If the settlement price is lower than where the trader has purchased a contract, the merchant's account is rejected rather than credited.

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