Forward and Futures Pricing
Future Pricing
The futures price is the price at which a futures contract trades on an exchange. It represents t...
Computation of Future Payoff
The payoff of a futures contract at expiration is the difference between the futures price at whi...
Margin Account Operation
Margin accounts are a crucial aspect of futures trading. They serve as a performance bond, ensuri...
Lot size, Initial Margin, Mark-to-Market settlement
Lot Size Lot size refers to the standardized quantity of the underlying asset specified in a futu...
Open Interest and Volume in Future Contracts
Volume: Definition: The number of futures contracts traded during a specific period (usually a ...
Hedging using Futures
Hedging is a risk management strategy that involves taking an offsetting position in a related as...
Arbitrage using Futures
Arbitrage is the simultaneous purchase and sale of an asset in different markets to profit from p...