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Frequently Asked Questions

What is the difference between futures and options?

CommodityWorld.com -- F.A.Q.
A commodity FUTURE is the OBLIGATION to either receive or deliver the product (at a certain place, date and time in the future) that is specified in a contract listed with a registered commodity exchange. A commodity OPTION is the RIGHT (but not the obligation) to receive a long or short position, for a specific listed commodity futures contract, at a certain price, within a certain time limit. The OPTION BUYER has the right to decide whether or not to exercise (i.e.

Where are the futures options?

Frequently Asked Questions about
If you click on any of the commodity contracts listed on the market information page, it will open a page that lists all of the currently traded contracts for that commodity. Above the commodity quote table, is a link that will open a window that displays all the options currently traded for that commodity. You can find the overnight trading markets by clicking on the green bar on the right side of www.ilfb.org that says "click here for IFB market info. See similar questions...

How are options different from futures?

FAQ's on Options
Futures are agreements/contracts to buy or sell specified quantity of the underlying assets at a price agreed upon by the buyer & seller, on or before a specified time. Both the buyer and seller are obligated to buy/sell the underlying asset. In case of options the buyer enjoys the right & not the obligation, to buy or sell the underlying asset. In case of options the buyer enjoys the right & not the obligation, to buy or sell the underlying asset. See similar questions...

Where can I learn more about trading futures and options?

FuturesView.com FAQ
The best way to learn about the futures markets is to read about them and "papertrade." Of course, the key is to read something written by a reputable and experienced author. You can visit our Recommended Reading page to see who we like. If you're a brand new trader and would like a roadmap of how to safely proceed from the very beginning, go to our Getting Started page. Another way to learn about the futures markets is to attend a seminar or workshop. See similar questions...

Do you trade options or futures?

DayTradeProfits.com - F.A.Q.
Excellent Returns.... .We offer to you excellent oportunities to increase your value quarter after quarter We buy a maximum of three stocks per day .Which enables you to obtain the highest return over your investment evading excessive commission costs. Reduced market exposure................... You decide which system is more convenient; You can control your account, choosing one of the two methods we offer.Swing Trade or Day Trade See similar questions...

What is the difference between gambling and futures or prediction markets?

Commonly Asked Questions about the Influenza Prediction Mark...
In futures markets investors make investments based upon their beliefs about the future, and they may profit or lose depending upon the outcomes of their investments. Unlike gambling, however, futures markets provide some "social good," the most common of which is to allow investors to "hedge risk" or to protect themselves against future price increases. See similar questions...

What is the difference between futures and spot trading?

Forex | FAQ | Liquidity | Volatility | Position | Margin | T...
When you are dealing in Yen or CHF in the futures market, you are buying a currency contract based on a forward date, dealing in standardised contracts made and traded on an exchange that is chartered and licensed to serve as a trading arena in specific futures contracts. Spot trading in the Forex market is different. A forward market is one in which people agree to trade a commodity at a fixed price at some future date. In the Spot market, the price in question is that for immediate delivery i. See similar questions...

What is the difference of Forex from Futures?

Forex | FAQ | Market | Trader | Currency quotation | Pips | ...
a potential investor it is important for you to understand the differences between cash Forex and currency futures. In currency futures, the contract size is predetermined. Futures traders exercise leverage by utilizing Margin to control a futures contract. (Margin is money deposited by both the buyer and the seller to assure the integrity of the contract.) See similar questions...

What is the Difference between Commodity and Financial Futures?

FAQs
The basic difference between commodity and financial Futures is the nature of the underlying instrument. In a commodity Futures, the underlying is a commodity which may be Wheat, Cotton, Pepper, Turmeric, corn, oats, soybeans, orange juice, crude oil, natural gas, gold, silver, pork-bellies etc. In a financial instrument, the underlying can be Treasuries, Bonds, Stocks, Stock-Index, Foreign Exchange, Euro-dollar deposits etc. See similar questions...

Can I use futures options instead of futures to trade the KDT's?

Seasonal Trader - FAQs On Seasonal Trading System
The answer to this is a qualified YES. You may do so as long as you avoid deep out of the money options. In fact, the best strategy is to use options that are close to the money or those which have relatively high deltas. See similar questions...

How are Stock Futures different from Stock Options ?

BSE - FAQ's
In stock options, the option buyer has the right and not the obligation, to buy or sell the underlying share. In case of stock futures, both the buyer and seller are obliged to buy/sell the underlying share. Risk-return profile is symmetric in case of single stock futures whereas in case of stock options payoff is asymmetric. See similar questions...

What will be the new margining system in the case of Options and futures?

FAQ's on Options
A portfolio based margining model (SPAN), would be adopted which will take an integrated view of the risk involved in the portfolio of each individual client comprising of his positions in all the derivatives contract traded on the Derivatives Segment. The Initial Margin would be based on worst-case loss of the portfolio of a client to cover 99% VaR over two days horizon. The Initial Margin would be netted at client level and shall be on gross basis at the Trading/Clearing member level. See similar questions...

What is the Difference between Forward Contracts and Futures Contracts?

FAQs
Standardized Vs Customized Contract - Forward contract is customized while the future is standardized. To be more specific, the terms of a Forward Contracts are individually agreed between two counter-parties, while Futures being traded on exchanges have terms standardized by the exchange. Counter party risk - In case of Futures, after a trade is confirmed by two members of exchange, the exchange / clearing house itself becomes the counter-party (or guarantees) to every trade. See similar questions...

What is the difference between the futures contracts and forward contracts ?

Welcome to National Multi-Commodity Exchange of India Ltd. :...
While futures contracts are traded on the exchange, forwards contracts are traded over-the-counter market. Incase of futures contracts the exchange specifies the standardized features of the contract, while no pre determined standards are there in the forward contracts. Exchange provides the mechanism that gives the two parties a guarantee that the contract will be honored whereas there is no surety/guarantee of the trade settlement in case of forward contract. See similar questions...

Who is GO FUTURES?

Go Futures
GO FUTURES is an Internet and traditional based futures brokerage. GO FUTURES strives to keep its trading technology and platforms at the forefront of the industry without sacrificing quality customer service and telephone based trading and support. At GO FUTURES we strive to provide futures traders with access to the latest trading technology and trading tools at the lowest commission rate in the industry. See similar questions...

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