182.Introduction to Futures Trading 3 - The Futures Contract

[OilTradingAcademy]

I offer an online Oil Trading Room at my website if you're interested.

David

[vikurupa]

very good and clear tone of voice. very international

[SpiritofDevotion]

Nice work, and very clear explanations. Keep it up.

[birchmanllc]

Dave,

Good one you are talking about stuff that isn't discussed much if at all. Truth be told this is about as safe as you can get in the futures market playing them right. Large companies such as Southwest airlines used hedging to lock in the low oil prices years ago. The other thing is the margin on hedged positions is typically way lower than straight positions taken. Normally about a fourth or fifth of straight contracts.

[kinouye]

can you do a simulation on thinkorswim it would be greatly appreciated?

[mrjaywilliams]

This might sound dumb but...Why would somebody sell their futures contract if they require the goods from it at a later date?

[InformedTrades]

Hi, I always say that the only dumb question is the one that is not asked. Very few futures contracts are held past the last trading day because generally the goals of the person looking to buy goods can be accomplished more easily by using the futures markets to hedge and purchasing the physical product from a local dealer. Best Regards, Dave

[khanpreston1]

@InformedTrades

hi.what is difference between a normal future contract and future stock.i can see an index of future stock in stock market.can you plz elaborate