futures trading explained

Futures Trading Explained – Futures vs Options vs Stocks…

Futures are one of the, if not even THE most traded and oldest derivative in the markets. They are standardized, extremely liquid and can be traded on almost any underlying asset or security. Nevertheless, many people either have no idea what futures are or can’t tell the difference between futures and other derivatives like options or forwards. In this article I will try to clarify what futures are, how futures differ from other derivatives and Read more

forward contract explained

What Are Forwards And How Do They Work

Forwards are very often confused with futures or even options. Many people don’t really get the differences as all of these derivatives are similar. In this article I will sum up what a forward actually is and what distinguishes it from a future or an option contract. What Are Forwards: Forwards are an Over-The-Counter (OTC) derivative. This means that they are based on something (an underlying) which really can be anything. It can be a Read more