Futures

What are futures?

Futures most commonly refer to futures contracts, which are standardized contracts traded on various futures exchanges like the Euronext in Europe or CME Group in the US. A futures contract gives the obligation to buy or sell a specific quantity of a specific commodity at a specific price on a certain date in the future, known as the expiration date or delivery date.

The price at which the commodity will be bought in the future is usually the current market price (also known as spot price) at the time of the initial sale of the futures contract. The spot price of a commodity is naturally determined by the equilibrium of the market supply and demand for the commodity in question.

Futures

Futures Trading, Companies List:

Pacific Futures Trading CO

1411 4th Avenue # 1025, Seattle WA

Commodity Contracts Brokers and Dealers

Commodity Futures Trading Commission

140 Broadway Floor 19, New York NY

Commodities

International Futures Trading Group

2290 N 1st Street # 108, San Jose CA

Commodity Contracts Brokers and Dealers

Future Trading Group LLC

5502 Cedaredge Court, Sugar Land TX

Valley Futures Trading LLC

N1615 US Highway 10 S, Weyauwega WI

American Futures Trading Inc

24501 Del Prado # A, Dana Point CA

Commodity Contracts Brokers and Dealers

Future Trading Inc

202 Berkshire Drive, Princeton NJ

Commodity Futures Trading

230 Park Avenue S, New York NY

US Commodity Futures Trading

1155 21st Street NW, Washington DC

MB Trading Futures Inc

1926 E Maple Avenue, El Segundo CA

Security and Commodity Exchanges

Trade Futures

825 S Us Highway 1 # 230, Jupiter FL

Commodity Contracts Brokers and Dealers

Hi-Tech Futures Trading

6706 Towhe Drive, Seffner FL

Commodity Contracts Brokers and Dealers

Hi-Tech Futures Trading

715 E US Highway 92 # D, Seffner FL

Commodity Contracts Brokers and Dealers

Hill Futures & Options Trading

720 N Larrabee Street, Chicago IL

M Trading Futures Options

260 Bayview Avenue, Massapequa NY

Direct Trade Futures

1073 S Winchester Boulevard, San Jose CA

Security Brokers, Dealers, and Flotation Companies

M B Trading Future

8603 E Royal Palm Road # 250, Scottsdale AZ

Security and Commodity Exchanges

Bushak Futures Research And Trading Inc

6645 Acres Drive, Independence OH

Robbins Trading Company Inc

(Robbin's Trading)

8700 W Bryn Mawr Avenue 760s, Chicago IL

Commodity Contracts Brokers and Dealers

N C Health Care Facilities Association

(Future Care)

5109 Bur Oak Circle, Raleigh NC

Daw Trading

111 W Jackson Boulevard # 1100, Chicago IL

Future

5750 Castle Creek Parkway N # 385, Indianapolis IN

Peter Aan

(Pwa Futures)

2607 Partridge Avenue, Arlington TX

Investors

Vankar Trading

20 W Kinzie Street # 1210, Chicago IL

Security and Commodity Exchanges

Korr Trading, Inc

68 S Service Road # 100, Melville NY

Commodity Contracts Brokers and Dealers

Gdc Trading LLC

19022 Oak View Terrace, Houston TX

Commodity Contracts Brokers and Dealers

Fsb Trading & Assoc

414 N Orleans Street, Chicago IL

Tibra Trading America LLC

175 W Jackson Boulevard, Chicago IL

Commodity Contracts Brokers and Dealers

Extra Mile Trading, LLC

(Futuros Usa)

440 S La Salle Street # 3990, Chicago IL

Commodity Contracts Brokers and Dealers

Rty Trading Group Inc

(Compass Financial)

5151 Adanson Street # 99, Orlando FL

Commodity Contracts Brokers and Dealers

Oil Merchants Trading Corp

1 N End Avenue Front, New York NY

Security and Commodity Exchanges

Strikepoint Trading, Inc

27201 Puerta Real # 300, Mission Viejo CA

Commodity Contracts Brokers and Dealers

Bkm Trading Inc

Chicago IL

Commodity Contracts Brokers and Dealers

Lawrence-Bonfitto Trading Company

Chicago IL

Commodity Contracts Brokers and Dealers

Great Lakes Trading Company Of Michigan

Sebewaing MI

Commodity Contracts Brokers and Dealers

Cme Group Inc

20 S Wacker Drive, Chicago IL

Foreign Trade and International Banking Institutions

Trimble, Robert John

(Building A Future Dream Cnstr)

Bertram TX

Special Trade Contractors

Harbour Futures

Granbury TX

Business Associations

Basarab Futures Inc

Seattle WA

Toay Commodity Futures Group

1370 NW 114th Street # 201, Clive IA

Professional Futures Services

New York NY

Investors

Future Pyramid Investments

9731 Southwest Freeway, Houston TX

The underlying asset of a futures contract can be a wide variety of financial instruments and commodities, such as stock indices, bonds, currencies, raw or primary products, etc.

The characteristics of futures are very similar to those of options, but one crucial difference between the two is that options give the buyer the right to buy the underlying asset, whereas futures give the obligation to the buyer to buy the underlying asset on the expiration date. This means that both the buyer and the seller of the futures contract must fulfill the terms of the contract on the expiration date.

The fulfillment of the terms of a futures contract is possible in one of two ways, depending on the type of the futures contract:

- Physical delivery – the specified quantity of the underlying asset is delivered by the seller of the futures contract to the futures exchange. The exchange in turn delivers the asset to the buyer of the futures contract. This type of delivery method is mostly used by parties interested in the actual underlying asset – usually the producers and consumers of the underlying commodity.

- Cash settlement – a cash payment is made by the party that sustained a loss on the expiration date of the futures contract to the party that profited. The amount paid is calculated with the help of a rate that is independent of the two parties, known as a reference rate. The reference rate is based on a specific index stated in the terms of the futures contract, for example a stock market index or the Euribor (Euro Interbank Offered Rate of interest rates). This method of settlement is the most popular of the two and is usually used by speculators.

There are two types of groups that actively trade in futures contracts. They are traders (or speculators) looking make a profit based on the difference between the buying and the selling price, with no intention of actually owning the underlying asset, and by non traders (also known as hedgers) who have a vested interest in an underlying commodity.

These non traders are usually the producers and consumers of the underlying commodity and are looking to hedge out the risk of price changes of the commodity in question. An example of this would be a grain farmer looking to secure a sell price for his future harvest, to do this he would then sell a futures contract. A livestock farmer would in contrast be interested in buying a futures contract to secure a buy price for his winter feed, making it easier for him to plan by taking the uncertainty of the future price of feed out of the equation.

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Subjects keywords: Futures, Definition of futures, Futures contracts, Commodity futures, Futures trades, Futures exchanges, Futures prices. All information about Futures.

FUTURES