Take a look at some basic examples of hedging in the futures market, as well as the return prospects and risks.

A futures contract legally obligates an investor to buy or sell a specific security or commodity at a predetermined price and time, and it’s facilitated on the futures exchange. When the future ...

Scholes for options to futures spot pricing. Understand pricing mechanisms for better financial decision-making.

Creating a diversified portfolio using futures contracts involves having a working understanding of how to diversify assets and how various assets are correlated with one another. Futures contracts ...

Commodities prices are set by investors buying and selling contracts for the delivery of raw materials now and in the future. When prices for a given commodity are lower for delivery today than they ...

Friday marked the final day of trading for Eurodollars futures, one of the primary instruments that traders have used to telegraph their expectations for Federal Reserve policy or to hedge the ...

Brazil’s weather caused some excitement in the soybean market this week. One day forecasts showed no rain, and the next it did. Until late January, farmers should expect South America’s weather ...

This is a one time “hoop” hedgers using futures must do that selling an HTA does not require. Including a hedge line with a bank to finance the hedge account is also a good idea. I will discuss this ...