Futures Bundle

AAA

DEFINITION of 'Futures Bundle'

A type of futures order that enables an investor to purchase a predefined number of futures contracts in each consecutive quarterly delivery month for a period of two or more years.

INVESTOPEDIA EXPLAINS 'Futures Bundle'

A futures bundle is an order containing all the quarterly futures contracts within the standard two-, three-, four- or five-year bundle periods. For example, a large gold-mining company would benefit from using a futures bundle to stabilize the price it will receive for its gold over the next four years.

RELATED TERMS
  1. Prediction Market

    A collection of people speculating on a variety of events - exchange ...
  2. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  4. Delivery Month

    A key characteristic of a futures contract that designates when ...
  5. Commodity Futures Contract

    An agreement to buy or sell a set amount of a commodity at a ...
  6. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
Related Articles
  1. Commodities: The Portfolio Hedge
    Active Trading

    Commodities: The Portfolio Hedge

  2. Options On Futures: A World Of Potential ...
    Options & Futures

    Options On Futures: A World Of Potential ...

  3. Futures Fundamentals
    Insurance

    Futures Fundamentals

  4. Curious About Stock Index Futures? Read ...
    Options & Futures

    Curious About Stock Index Futures? Read ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center