What Is a Futures Contract? Specs, Expiry, Rollover, and Margin
A futures contract is a standardized, exchange-traded agreement to buy or sell an asset at a set price on a set date. Here's how tick size, expiry, rollover, and margin actually work.
A futures contract is a standardized, exchange-traded agreement to buy or sell an asset at a set price on a set date. Here's how tick size, expiry, rollover, and margin actually work.
A stock index is a single number that summarizes the price action of a basket of companies. The S&P 500 tracks roughly 500 large US firms, the Nasdaq-100 tracks the 100 largest non-financial names on the Nasdaq exchange, and the Dow Jones Industrial Average follows 30 blue-chip stocks.
People have been trading oil, gold, wheat, and cattle for centuries. What has changed is how you access these markets. You no longer need a seat on the Chicago Mercantile Exchange or a warehouse full of soybeans.