Futures Pricing and Front Months

A futures contract is a forecast of what market participants project the prices of the products to be in the future at contract expiration. This price is known as the cash price which represents the current value of the underlying product. Understanding the relationship between the cash price and the futures contract front months can help traders form trading ideas to help guide their strategies. Read More

Managing Excess Margin

Excess margin can be defined as the amount of equity in a brokerage account above the minimum margin requirements.

Managing excess margin is an important concept in futures trading as failure to maintain sufficient levels of margin can result in possible liquidation and/or fines from the broker trade desk.Read More

What is a Futures Contract?

Understanding the fundamentals behind the futures industry is an important component for every new and aspiring futures trader to grasp.

To paint a clear picture of how futures trading has evolved into its current state, it’s helpful to review the definition of a futures contract and the origins of trading.Read More

What is Futures Delivery?

Whether its oil, gold, cash or even bonds, all futures contracts revolve around a tangible product.

New futures traders often wonder if the delivery of a commodity will come to fruition after a contract expires. Should one be prepared to securely store or deliver 100 Troy Ounces of Gold at contract maturity?Read More

Futures Day Trading Margins: Intraday Margin

Trading margins represent a deposit with the broker to protect both the trader and broker against possible losses on an open trade. With this deposit, day traders are able to trade instruments valued much greater than the margin price via leverage. Read More