answersLogoWhite

0

What are stock futures?

Updated: 8/16/2019
User Avatar

Wiki User

14y ago

Best Answer

About the stupidest thing you can buy. A stock future is a contract in which you will buy or sell securities for a certain amount on a certain date. The risk is very certain: if you buy a futures contract to purchase 100 shares of Acme for $20 per share on September 1, and Acme's selling at $10 on September 1, you immediately lose $1000. Buying an option's different: if you buy a call for 100 shares of Acme at $20 and it's $10 on September 1, you just let the option expire.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are stock futures?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Where can one compare companies who offer stock futures?

The CNN website offer U.S stock futures data. On the site, they compare stock futures of many different companies. Bloomberg also allows one to compare stock futures.


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.


Where to find some individual stock futures?

Single-stock futures In finance, a single-stock futures is a type of futures contracts between two parties to exchange a specified number of stocks in company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange


What is the risk level of stock-futures investments?

The risk level of stock-futures investments is generally high. Stock futures are derivative contracts that derive their value from an underlying stock. As such, they are subject to market volatility, price fluctuations, and other risk factors associated with the stock market. Investors should carefully assess their risk tolerance and make informed decisions before investing in stock futures.


Changes in stock market and universal stock futures?

ttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttt


Where can one find more information about stock index futures?

You can find a lot of information on stock index futures from newspapers, financial magazines, on TV news, and online. You can easily go online and go to Google finance or CNBC and look at the stock index futures.


What has the author B Thomas Byrne written?

B. Thomas Byrne has written: 'The Stock Index Futures Market' -- subject(s): Stock index futures


The Sydney Stock Exchange quotes prices for futures trading What does the initials SPI stand for?

spi futures


What is stock and index futures?

Bets on future prices.


How can I predict stock futures?

Being able to predict stock futures is not an easy thing to do. In addition to studying, one needs to make wise investment choices and even then it is not guaranteed.


What can be found on the FTSE Futures website?

On the FTSE Futures website, there are predictions for stock prices of stocks in the London stock exchange. It also include materials future prices, such as gold and wheat.


What is the difference between investing in the stock market and futures and options trading?

Options and futures are derivatives of Stocks. This means that options and futures derive their value from the stock that they are based on. For a simplistic explanation, a call option with a strike price of $10 gains $5 in value when its underlying stock rises by $5 above $10. If the stock does nothing, then no value is gained. As such, buying options or futures isn't the same as buying the stock itself because by owning these derivative instruments, you do not own the stocks they are based on.