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You purchase a futures contract by first opening a futures trading account, which is a margin account, with a futures broker. Once that is done, simply choose the specific futures contract you wish to buy and then pay its "Initial Margin", which is a deposit needed to start a futures trade.
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∙ 11y ago
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What statement best explains what a futures contract is?
A futures contract is a contract setting the price and date for a commodity purchase.
What best explains what a future's contract is?
A futures contract is a contract setting the price and date for a commodity purchase.
What Best Explains What Futures Contract Is?
(apex) a contract setting the price and date for a commodity purchase.
Which if the following best explains what a futures contract is?
(apex) a contract setting the price and date for a commodity purchase.
What are US stock futures used for?
Stock futures are contract agreements to purchase a specified amount of stock at a certain price at a set date in the future. Stock futures are used as a way to protect, or hedge, an investment.
What type of company is the Commodity Futures market?
there are two types that are part of the commodity futures market. A normal futures market is one where the price of the nearby contract is less than the price of the distant futures contract. The other is an inverted futures market, the price of the near contract is greater then the price of the distant contract.
How many bushels of wheat in a futures contract?
A wheat futures contract covers 5000 bushels of whatever wheat (there are different kinds) is specified in the contract.
What type of market is the commodity market?
there are two types that are part of the commodity futures market. A normal futures market is one where the price of the nearby contract is less than the price of the distant futures contract. The other is an inverted futures market, the price of the near contract is greater then the price of the distant contract.
What does a futures contract mean in finance?
A futures contract is a legally binding contract that agrees to buy or sell something at a previously agreed upon time with a previously agreed upon price. For example, a company might agree to purchase another company in July next year for 1 million dollars today.
What are the requirements for trading under commodity?
The Commodity Exchange Act make it illegal to trade a contract for the purchase or sale of a commodity for future delivery a futures contract unless the contract is executed on a federally designated exchange .
When did trading begin in foreign currency futures?
In 1972 it launched a contract in foreign currency futures.
How does trading futures differ from stocks?
One can own a stock, but trading futures requires one to contract for the futures. Buying stocks gives you ownership (or your own share) in a part of the company that you're buying into. Trading futures, one enters into a contract for a particular commodity instead of actually buying into it. You can then contract to be a buyer or a seller of that commodity.
