Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

umfan92

What is Futures?

Recommended Posts

Well I'm embarrassed asking this question but I have not been able to find out the answer anywhere on Google for some reason and I don't know any experienced traders.

 

I hear a lot of talk about Futures, and Forex, and other things that I have no idea what they are.

 

So, what is futures?

 

I know what forex is, currency trading right? So what's futures?

 

I have no plans on trading any of that yet since I am very new to trading and I haven't even figured out stocks, but I still want to know.

 

Also, since I'm already here, can someone tell me what the ES mini is? (or whatever it's called)

 

I hear everyone saying it's much better yet I still can't find any info on it on Google.

 

Thanks everyone. You don't have to give me a huge description (although I would really appreciate it) but if you could give me a summary and maybe a link to some educational material that would be great.

Edited by umfan92

Share this post


Link to post
Share on other sites
Well I'm embarrassed asking this question but I have not been able to find out the answer anywhere on Google for some reason and I don't know any experienced traders.

 

I hear a lot of talk about Futures, and Forex, and other things that I have no idea what they are.

 

So, what is futures?

 

I know what forex is, currency trading right? So what's futures?

 

I have no plans on trading any of that yet since I am very new to trading and I haven't even figured out stocks, but I still want to know.

 

Also, since I'm already here, can someone tell me what the ES mini is? (or whatever it's called)

 

I hear everyone saying it's much better yet I still can't find any info on it on Google.

 

Thanks everyone. You don't have to give me a huge description (although I would really appreciate it) but if you could give me a summary and maybe a link to some educational material that would be great.

 

ES mini - Google Search

Share this post


Link to post
Share on other sites

Go o the CME website and you will have a lot of tools to use for learning about futures and other markets. Here is the link. CME Group - Futures & Options Trading for Risk Management

 

Have a great night,

I am a successful commodities trader, don't listen to people who try to bring you down. If you never ask, you never know. I was able to get where I am today from asking questions and finding the right mentors.

 

Keep workin at it.

Share this post


Link to post
Share on other sites

Hello There,

 

This has to be quick so I hope you have found more information on another site, but futures are instruments which are traded around a delivery date. Futures may include things such as the S&P 500 E-Mini contracts, or actual resources (commodities) such as sugar, coffee, coca, lumber, cattle, hogs, etc. When you purchase a futures contract your position is highly leveraged with brokers only requiring a minimum amount of the total contract value up front. This can work in your favor so long as the markets move in your favor. A contract must include a delivery date, if you hold the contract through delivery you may end up with one hell of headache (assuming your speculating).

 

These instruments are used by speculators and individuals such as farmers or producers who utilize these markets to hedge against future risks should the market dynamics change.

 

I hope this helps! There are a handful of excellent books out there (amazon) on Futures.

 

Cheers,

 

Ryan :)

Share this post


Link to post
Share on other sites

Investopedia is a good place to start:

 

Futures Definition

 

I think that the futures market originally started as a way for farmers to manage their risk. Because harvests were unpredictable, and the farmers needed a way to financially plan for next years crop, if they were guaranteed a certain price before their crop was delivered, it gave them a sense of security and a way to calculate their potential profit. If someone was willing to give the farmer a set price before harvest, then the farmer could "lock in" a certain price. The buyer entered a contract with the farmer, whereby the buyer guaranteed a certain price to the farmer. Now that the farmer is guaranteed a certain price, they have a guaranteed amount of profit. If the buyer of the futures contract gets the crop at a lower price than they can sell it for, then they make a profit on the resale.

 

Futures contracts like the e-mini's are "rolled over", but if you buy a futures contract for a commodity, and you don't sell it before that contract date expires, you could actually be liable to take delivery of that commodity. So unless you actually want a truck load of beans at your front door, that you are liable to pay for, sell the contract before it expires.

Edited by Tradewinds

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • ...hallucinates.... Student: “What if we gave the monkey LSD?” Guru: “The monkey already did LSD”
    • Question: To those that had/have cancer, what were the signs that made you think “something is not right here” to make you go see a doctor? Answer: So, 5/25/2018, I woke up, got ready for work, and as I walked to my car, I started gagging. Like something was stuck in my throat and I needed to clear it. And then it went away.   But 10 minutes after that, I was T-boned at 40mph on the driver side door. But what made me see a doctor was while my muscles felt better and bruises were going away, the gagging still continued, I started having fevers, my neck felt swollen, I was having such a hard time breathing, and I'd have random sharp pains in my chest, but not from where the seat belt saved me.   2 weeks after the accident, I finally see an urgent care doctor, who looks me over, tells me I'm fine, but luckily requests a neck X-ray. And I ask for a chest X-ray, which he rolls his eyes but let me have (most of my pain was in the neck, so I understand).   The very next day, he calls and says “So, that chest X-ray shows there's a 4 inch mass on your heart and lungs, and your lungs have been filling up with fluid, as well as in your pericardial (heart) wall. We need you to come in tomorrow.”   Turns out the big mass, due to the accident, caused my heart and lungs to tear and fill with fluid, the swollen neck and gagging was caused by 2 metastasized tumors, and the fevers and weight loss were symptoms. Stage 4b Hodgkin's Lymphoma.   But thankfully, we went very aggressive with chemo (and had a lot of bad side effects that don't normally happen to patients), and now I'm about 16 months cancer-free. Yay lucky X-rays! Rachel Jurina, Quora Source: https://www.quora.com/To-those-that-had-have-cancer-what-were-the-signs-that-made-you-think-something-is-not-right-here-to-make-you-go-see-a-doctor   Profits from free accurate cryptos signals: https://www.predictmag.com/  
    • As a man, the reality of life is the harshest part. I don’t mind looking older or becoming weaker over time; it’s nature.   Have you ever heard that the only people who will be loved unconditionally are women and children? Men will only be loved as long as they can provide until they are no longer needed. It doesn’t matter if you already did your best to get your kids to the best school or get the best things for them, if you stop before they’re done with it, there will be no thank you. The only thing they will remember is that they have to quit school at 15, ignoring all the previous 15 years of life you provided for them. The only people who will accept you, no matter what, are your parents. But in this situation, you might be that ungrateful child.   EDIT: Wow, I didn’t think this would get so much attention.   For those who disagree, I can only say that everyone has their problem. If you don’t get the chance to face such a thing, be grateful. Remember, sometimes what you throw in the garbage is something that someone wishes ever to have.” – ElZee, Quora   Profits from free accurate cryptos signals: https://www.predictmag.com/    
    • The good thing i had noticed so far is that the traderpot value is also on the rise..
    • yup its a gradual rollout the right way in my opinion, its really good and its exciting for the sto in 2027
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.