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Equity
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Future Delivery
See AlsoSimple Agreement for Future Tokens (SAFT)OECD Standard Audit File for Tax Purposes (SAF-T) Localizations Implementation GuideSAFE, SAFT, SAFE+TSAFT Agreement Explained: Your Ultimate Guide [2023]Future delivery refers to the quantity of financial instrument or commodities contracted to be delivered at a future date.
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Guts Options (Gut Spread)
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Definition: A futures contract is a contract between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future.
Description: The payment and delivery of the asset is made on the future date termed as delivery date. The buyer in the futures contract is known as to hold a long position or simply long. The seller in the futures contracts is said to be having short position or simply short.
The underlying asset in a futures contract could be commodities, stocks, currencies, interest rates and bond. The futures contract is held at a recognized stock exchange. The exchange acts as mediator and facilitator between the parties. In the beginning both the parties are required by the exchange to put beforehand a nominal account as part of contract known as the margin.
Since the futures prices are bound to change every day, the differences in prices are settled on daily basis from the margin. If the margin is used up, the contractee has to replenish the margin back in the account. This process is called marking to market. Thus, on the day of delivery it is only the spot price that is used to decide the difference as all other differences had been previously settled.
Futures can be used to hedge against risk or speculate the prices.
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Future Delivery
Future delivery refers to the quantity of financial instrument or commodities contracted to be delivered at a future date.
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Guts Options (Gut Spread)
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Related Definitions
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- How commodity derivatives help health industry manage price risks in Isabgol FuturesIsabgol, a global commodity produced in India and exported mainly to the US, China, and Europe, has debuted on the NCDEX platform. The commodity's price is affected by every international trade instance such as geopolitical tension, trade war, and forex price momentum. The pharmaceutical industry can benefit from commodity derivatives to manage pricing risks, as the price of Isabgol is vulnerable to climate and weather changes. Derivatives like futures contracts can be used to hedge prices.
- How commodity derivatives help health industry manage price risks in Isabgol FuturesIsabgol, a global commodity produced in India and exported mainly to the US, China, and Europe, has debuted on the NCDEX platform. The commodity's price is affected by every international trade instance such as geopolitical tension, trade war, and forex price momentum. The pharmaceutical industry can benefit from commodity derivatives to manage pricing risks, as the price of Isabgol is vulnerable to climate and weather changes. Derivatives like futures contracts can be used to hedge prices.
- How commodity derivatives help health industry manage price risks in Isabgol FuturesIsabgol, a global commodity produced in India and exported mainly to the US, China, and Europe, has debuted on the NCDEX platform. The commodity's price is affected by every international trade instance such as geopolitical tension, trade war, and forex price momentum. The pharmaceutical industry can benefit from commodity derivatives to manage pricing risks, as the price of Isabgol is vulnerable to climate and weather changes. Derivatives like futures contracts can be used to hedge prices.
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