Futures contract: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
(Add links.) |
||
| Line 24: | Line 24: | ||
* [[Clearing house]] | * [[Clearing house]] | ||
* [[Close out]] | * [[Close out]] | ||
* [[Commodity]] | |||
*[[Contract]] | *[[Contract]] | ||
* [[Currency futures]] | * [[Currency futures]] | ||
| Line 48: | Line 49: | ||
* [[Tick]] | * [[Tick]] | ||
* [[Variation margin]] | * [[Variation margin]] | ||
* [[West Texas Intermediate]] | |||
[[Category: | [[Category:Financial_products_and_markets]] | ||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
[[Category: | [[Category:The_business_context]] | ||
Revision as of 21:36, 2 February 2024
Futures contracts are contracts stipulating the purchase or sale of commodities, currencies or securities of a specified quantity, at a specific price and on a predetermined date in the future.
Futures contracts tend to be standardised in terms of quantity, price and maturity periods.
They are written against an exchange clearing house and traded through the clearing house.
They also require a refundable up-front security payment (initial margin) and subsequent variation margin adjustments.
Because of their standardisation, futures contracts have a deep secondary market.
Their uses include hedging and speculation.
Often abbreviated to futures.
See also
- Basis
- Bond futures
- Clearing house
- Close out
- Commodity
- Contract
- Currency futures
- Default
- Derivative instrument
- Exchange
- Exchange traded
- Fixing instrument
- Forward contract
- Future-proof
- Hedging
- Initial margin
- Interest rate futures
- International Organization of Securities Commissions
- Margin
- Margin call
- Open interest
- Outturn
- Over the counter
- Secondary market
- Speculation
- STIR
- Swapnote
- Tick
- Variation margin
- West Texas Intermediate
