Futures | Web Scraping Tool | ScrapeStorm
Abstract:Futures are a type of financial derivative, which are financial contracts that cover the sale of a financial instrument or physical commodity for future delivery. ScrapeStormFree Download
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Introduction
Futures are a type of financial derivative, which are financial contracts that cover the sale of a financial instrument or physical commodity for future delivery. Specifically, a futures contract is a financial instrument used by investors and businesses to manage risk, speculate on price changes, and ensure future delivery of a commodity or financial asset. It is a standardized legal agreement to buy or sell an underlying asset at a predetermined price (the futures price) on a specified date in the future (the expiration date). Futures contracts can be based on a variety of underlying assets, such as commodities (such as oil, gold, agricultural products), currencies, stock indices, interest rates, and even cryptocurrencies. Futures contracts are typically traded on organized exchanges, which provide a transparent, regulated, and standardized market for buyers and sellers.
Applicable Scene
One of the main uses of futures contracts is to hedge against the risk of price fluctuations. For example, a farmer can sell a futures contract for a crop to lock in a specific price, protecting against potential price falls; conversely, a food processing company can buy a futures contract to secure a specific price for the raw materials it needs, protecting against potential price increases.
Pros: Futures trading uses a margin system. Investors only need to pay a small amount of margin to control larger contracts, thereby increasing the efficiency of fund use and potentially obtaining higher returns. The futures market allows both long (buy up) and short (buy down). Whether the market is rising or falling, investors have the opportunity to make a profit.
Cons: Although the existence of leverage amplifies the returns, it also amplifies the risk of losses. If the market trend is contrary to investors’ expectations, it may cause huge losses. The futures market is complex and changeable, requiring investors to have rich professional knowledge, market analysis capabilities and trading experience. Futures prices fluctuate frequently and violently, which can easily bring great psychological pressure to investors and lead to wrong decisions.
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1. Futures.
2. Futures and spot prices.
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Reference Link
https://www.investopedia.com/terms/f/futures.asp