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What are stock futures & currency futures?

The prices of stock futures and currency futures may differ from prices of their underlying assets and can be either higher or lower. These prices reflect the market sentiment and a general attitude of traders and investors toward a specific stock or currency.

Why are futures traded on a futures exchange?

Futures traded on a futures exchange allow the sellers of the underlying commodities the certainty of the price they will receive for their products at the market. At the same time, the exchange will enable consumers or buyers of those underlying commodities the certainty of the price they will pay, at a defined time in the future.

What is a futures contract?

A futures contract is a legal agreement between a buyer and a seller to either buy or sell an asset at a predetermined future date and price. The duration of the contract may vary depending on the underlying asset. For example, commodity futures are traded within 3 months while interest rate futures are traded within 30 days only.

Are Futures a safe option for bitcoin exchange-traded funds?

SEC Chair Gary Gensler is on the record stating that given the novel character of cryptocurrency, relying on the proven and highly regulated futures market is a much safer approach for Bitcoin exchange-traded funds. Futures are an agreement between two parties to sell a particular asset at a future date.

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