Trading Futures Meaning
A futures contract differs.
Trading futures meaning. The trading of physical oil or large amounts of gold as examples is generally limited to a small number of institutions whereas most retail traders have access to futures trading. Day trades vary in duration. They can last for a couple of minutes or at times for most of a trading session. For example if someone buys a july crude oil futures contract cl they are saying they will buy 1 000 barrels of oil from the agreed price upon the july expiration regardless of the market price at that time the seller is likewise agreeing to sell those 1 000 barrels of oil at the agreed upon price.
Futures contract a legally binding agreement to buy or sell a commodity or financial instrument in a designated future month at a price agreed upon at the initiation of the contract by the buyer and seller. Day trading is the strategy of buying and selling a futures contract within the same day without holding open long or short positions overnight. Futures trading is especially common with commodities. The option for cash settlement means that investors without storage capacity can make trades in most commodities and that intangible objects such as the vix index can be traded easily and securely.
Futures contracts are standardized according to the quality quantity and delivery time and location for each commodity. Contract language that allows adjustments to be made to the premium and commission features of a reinsurance treaty.