Synthetic Futures Contract

A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. ...

1. The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.2. In the context of options, the buying of an options ...

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option ...

1. The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.2. In the context of options, it is the sale (also known as "writing") of ...

The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. ...

A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets.

The process of selling portions of total held shares while the price increases. To scale out (or scaling out) means to get out of a position (e.g., to sell) in increments as the price ...

Learn how to read the volume reports, look at the relation to liquidity and interpret volume using open interest.

There's one simple hurdle in the transition from stock to futures options: learning about product specifications.

Learn how these futures are used for hedging and speculating, and how they are different from traditional futures.