Futures
Futures are derivative contracts that create an agreement between two parties to buy or sell an underlying asset at a pre-agreed price and date. These contracts obligate the buyer to purchase, and the seller to sell, the underlying securities, which can include stocks, bonds, interest rates, currencies, and commodities. Futures are commonly used for hedging risks or for speculative purposes, as they allow investors to profit from price movements in the underlying asset without actually owning it.
Related Terms
EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric...
Liquidity Trap
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Commodity Spread Straddle
A commodity straddle is an options trading strategy where a trader buys both a call...
Free Float Market Capitalization
Free-float market capitalization (FFM) is a valuation method that calculates a company's market value using...
Cheapest To Deliver
Cheapest to Deliver (CTD) refers to the lowest-priced security in a futures contract that a...
Gravestone Doji
A Gravestone Doji is a candlestick pattern that indicates a potential reversal from a bullish...
