what are the key characteristics of futures contracts?
7828
['Futures contracts are traded on an exchange while forward contracts are privately traded.', 'Since they are traded on exchange, futures contracts are highly standardized. ... ', 'A single clearinghouse acts as the counterparty for all futures contracts.']
1398083
['inflation. the continual increase in the price level of a basket of goods ans services.', 'real-risk free rate. nominal risk free rate that would exist on a security if no inflation were expected.', 'default risk. ... ', 'liquidity risk. ... ', 'special provisions. ... ', 'term of maturity.']
1235052
['Check the futures spread over spot before trading. ... ', 'This is a leveraged position and you must treat it accordingly. ... ', 'Check data on open interest before taking a position. ... ', 'Avoid getting in a liquidity trap. ... ', 'There are multiple margin implications. ... ', 'Beware the overnight risk in Nifty futures.']
469515
['Fixed Price (Lump sum) Contracts: The seller and the buyer agree on a fixed price for the project. ... ', 'Cost Reimbursable Contracts. What will you do if the scope of the work is not clear or not fully identified? ... ', 'Time and Material Contracts or Unit Price Contracts:']
288337
['2.1 Agreement.', '2.2 Consideration.', '2.3 Capacity.', '2.4 Intention.', '2.5 Certainty.']
751855
Futures, forwards and options are three examples of financial derivatives. Options and futures are traded as standardized contracts on exchanges, whereas forward contracts are negotiated agreements between counterparties.
822316
There are three types of derivative contracts including options, swaps, and futures/forward contracts.
397360
The major difference between Futures and Forwards is that Futures are traded publicly on exchanges and the Forwards are privately traded. ... The Forward Contract or the Forwards is the agreement which takes place between two parties to either buy or sell the asset at the pre agreed time at a specific price.
860706
Futures contracts are standardized agreements that typically trade on an exchange. One party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date.
15469
['A valid and binding agreement. This means there must be a valid offer and there must be acceptance of the offer. ... ', 'Consideration. ... ', 'Capacity. ... ', 'Intention. ... ', 'Formalities. ... ', 'Legal purpose.']
853124
NASDAQ derived futures All of the NASDAQ derived future contracts are a product of the Chicago Mercantile Exchange (CME). They expire quarterly (March, June, September, and December), and are traded on the CME Globex exchange nearly 24 hours a day, from Sunday afternoon to Friday afternoon.
1218323
['Agreement. Offer presented by one party that is accepted by the other party. ... ', 'Consideration. The price or liability paid for the promise. ... ', 'Intention to Create Legal Relations. Intention for contract to be legally binding. ... ', 'Certainty.']
656286
['Safety.', 'Predictable outcome or guaranteed return.', 'In demand.', 'Consistent earnings or payout.', 'Easy to buy or sell.', 'Undervalued.']
921357
As a rule in the crypto venue, “Futures” should not necessarily involve commodities, but can be based on financial instruments. Bitcoin Futures contracts allow speculation on what you think the price of Bitcoin will be in the future, and that does not require obtaining Bitcoin even.
321514
The main difference between spot and futures prices is that spot prices are for immediate buying and selling, while futures contracts delay payment and delivery to predetermined future dates. The spot price is usually below the futures price. The situation is known as contango.
1425620
['fixes the future rate, thus eliminating downside risk exposure.', 'flexibility with regard to the amount to be covered.', 'relatively straightforward both to comprehend and to organise.']
188473
Crude oil futures are futures contracts in which buyers and sellers of oil coordinate and agree to deliver specific amounts of physical crude oil on a given date in the future. ... The specifications for crude oil futures contracts are set in a way that allow market participants to trade them uniformly.