Futures Bundle


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.

BREAKING DOWN '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.

  1. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  2. Prediction Market

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

    A contractual agreement, generally made on the trading floor ...
  4. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  5. Futures Market

    An auction market in which participants buy and sell commodity/future ...
  6. Delivery Month

    A key characteristic of a futures contract that designates when ...
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  1. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  2. Can mutual funds invest in commodities?

    Mutual funds can invest in commodities. In fact, mutual funds may provide a better way for investors to gain exposure to ... Read Full Answer >>
  3. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  4. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  5. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
  6. How can an investor profit from a fall in the utilities sector?

    The utilities sector exhibits a high degree of stability compared to the broader market. This makes it best-suited for buy-and-hold ... Read Full Answer >>

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