In this post I am going to explain the concept of a Futures contract. Just like any other investment ideas, there are three things about Futures or Options that you must understand.
- Underlying Concepts.
- Practical Information e.g. How to buy or sell Futures and options using your online trading account?
By now the underlying concept of a Futures contract must be clear. However you will have to read my next posts for actual practical information on buying/selling futures, options and strategies. We will come back to the above example of farmer/baker when we discuss hedging strategies.
Stock Market Derivatives: Futures, Options
Options Trading Basics
In the Money Stock Options
At the Money Stock Options
Out of the Money Stock Options