« Standard vs. prepaid credit cards | Home | High-yield safe investments »
Three aspects of online future trading
By Capitalist | May 22, 2009
Futures trading deals with a contract, also called an agreement. It implies that a buyer or seller agrees to buy and sell a particular commodity on a future date irrespective of the price that is set for the commodity on that given day. Sellers expect a quick buck and buyers generally assume that the commodity would go far higher and thus provide them with a gallant return on investment.
The expiry date of a futures contract is drawn a number of days in advance. This cannot be tampered with on a later day. Futures commodity or futures trade is often stipulated for the Thursdays prior to the closure of the month.
Mostly the futures contract deal with an opposite-faced contract. It puts a conflicting equation in front of the buyers and sellers who have agreed to a futures contract on a stipulated day in the future.
Topics: Stocks & Trading | No Comments »