General Disclaimer: All the articles here are presented with no warranty. The information displayed on investingbytes.com may be different from what you see when you visit a financial institution, service provider, or a specific product’s site. We are not responsible for any errors or other inaccuracies in the content on our website. The information provided on our website is solely for informational and educational purposes, We recommend that you obtain considered and independent advice from a financial professional before you make any financial decisions or implement any financial strategy.
Advertiser Disclosure: Card Listings and other financial products that appear on this site are from financial companies for which investingbytes.com may receive compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. Investingbytes.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Here’s what the future stock market is all about
A stock future describes a contract that is drawn to sell a particular amount of a stock for a defined price on a set date in the future. The stock market in the U.S. is particularly known for its volatility. That’s where the stock future comes into play and helps in saving your portfolio from getting ruined by any possible market fluctuations that can happen. A basic knowledge of the stock market for various things like how to buy stocks and how to buy stocks online, how to invest in stock market online, how to purchase stock options, which stock to buy, best stock broker firms and being able to do a stock market analysis will come in handy. In case one is not equipped with that knowledge and has immense interest in the subject, one can always look up online or apply for stock trading schools.
The best possible way to understand the concept of stock future and how they work would be to consider it as something you can control. For instance, say you own a cotton textile industry. It is obvious that the price of cotton would keep fluctuating from one day to another. But in your best interest, in order to make the maximum profit you will need to buy the cotton at the least price possible so that you can earn the maximum profit on the finished product. However, the farmer who would sell the cotton to you would also not agree to sell it below the market value. So, both of you agree on a fair price which definitely won’t be below the market value but also won’t be anywhere closer to the highest price possible, and then enter into a futures contract.
One of the differences between the stock futures and the tangible commodities like wheat, corn, cotton etc. would be that a stock futures contract is almost never held till the absolute expiration date. These contracts are bought and sold on the futures market on the basis of their relative value.
Identity theft protection agencies offer a wide range of services that include protecting an indivi...Read more
While looking for cheap travel insurance, it is important to look for the coverage they provide. How...Read more
Medicare Supplement Plans, also called Medigap plans, are offered by private Insurance companies at ...Read more
Property insurance or home insurance is an insurance policy that offers you some degree of loss prot...Read more
Subscribe to our newsletter to receive latest updates in the world of finance!