Take a look at some basic examples of hedging in the futures market, as well as the return prospects and risks.

Despite its relatively short history, the energy futures contract has become an essential part of the modern financial system, thanks to its efficiency in controlling volatility in the price of ...

A futures contract legally obligates an investor to buy or sell a specific security or commodity at a predetermined price and time, and it’s facilitated on the futures exchange. When the future ...

Albert Phung has 7+ years of experience as a process improvement consultant for several businesses; currently with Alberta Health Services. Dr. JeFreda R. Brown is a financial consultant, Certified ...

The "spot price" is the current price of an asset with payment being immediate and the buyer taking delivery immediately or within a few days. Spot price is determined by supply and demand and most ...

Options on futures are a kind of contract that gives an investor the right to buy or sell futures at a specific price in a specific period. Options on futures, therefore, layer the "optionality" of ...

For retirees (or soon-to-be retirees), futures contracts can offer an additional avenue for diversification and hedging opportunities, helping to manage market volatility. However, there are a few ...

Derivatives are financial instruments that derive their value from one or more underlying financial assets. Learn more about the types of derivatives and the pros and cons of investing. Financial ...

There are a lot of unknowns in investing. For example, you don’t know what the price of a stock will be tomorrow. If you did, investing would be a risk-free endeavor! Instead, it’s all investors can ...