Six Major Differences Between Financial Futures And Financial Options

Speculation is the act of buying and selling to take advantage of market spreads to make a profit based on a judgement of the market.

In a broad sense, any risk-taking behavior for profit can be called speculation; in a narrower sense, speculation refers to risky investment behavior that takes advantage of fluctuations in the price of commodities or financial assets in the market.

A futures hedge is a way of reducing business risk while still making a profit on an investment by entering into two trades that are correlated, opposite in direction, equal in quantity and offsetting in profit and loss.

The following are common terms of futures trading, hoping to help you

Futures speculation is the use of futures trading provides the role of margin trading mechanism and T + 0 trading mechanism plus very low commission these three advantages, in order to obtain a small price jump in the plate for the purpose of the trading method.

A futures is a standardised tradable contract on a commodity or financial instrument. The underlying may be a commodity such as agricultural products, crude oil, gold or a financial instrument.

It is often said that the arbitrage principle of stock index futures and spot index refers to the trading strategy of investing in stock index futures contracts and corresponding packages of stocks to seek profits from the price differences of the same group of stocks in the futures and spot markets.

The difference between futures basis spreads and spreads.

Futures, abbreviated as SPIF in English, refers to stock price index futures, also known as stock price index futures and futures, and refers to standardized futures contracts with stock price index as the subject matter. Both parties agree that the target index can be bought and sold according to the size of the stock price index determined in advance on a specific date in the future. Dayou Stock Index Futures Analyst Net points out that the two sides are trading the stock index price level after a certain period of time, and the delivery is carried out through the cash settlement difference. As a type of futures trading, stock index futures trading and general commodity futures trading have basically the same characteristics and processes. Stock index futures are a kind of futures. Futures can be roughly divided into two categories: commodity futures and financial futures.