Futures markets arrange another bag to Commerce stocks.
Futures contracts are derivatives that exist in many financial markets. The inventory mart is no exception, offering both index and unmarried inventory futures contracts. Everyone futures Business agreement typically represents 100 shares.
Futures Contracts
A futures Business agreement is a legal Treaty between two parties to alter an asset at a place worth at a booked time. In the inventory mart, a futures Business agreement represents shares of inventory. Thence, a futures contract in the stock exchange represents an agreement between two parties to exchange a certain number of shares at a set market price and date.
As with index futures, single stock futures result in a long or short position in a stock if held until expiration.
If held until expiration, an index futures contract converts to a long stock market position for buyers or a short stock market position for sellers.
Single Stock Futures
Single stock futures are futures contracts tracking shares of a single stock. Each single stock futures contract represents 100 shares of the specified stock.
