What is future and option in stock market?

What is future and option in stock market?
by

1 Answer

Answer :

A futures contract is an agreement to buy or sell on date A, quantity B of stock C for price per share D. When date A comes around, you must buy the stock for that price. How this can backfire on you is pretty easy to understand. You bought a futures contract to buy 10,000 shares of GM for $30 per share on June 1, 2009. On June 1, 2009, GM declared bankruptcy and its stock closed at 75 cents per share. An instant loss of $29.25 per share (or $292,500 on the whole deal) is enough to forever discourage anyone from trading in stock futures. Futures have a purpose in life--stabilizing the price of commodities for their users--but stock trading isn't one of those purposes. Options are different: they are like futures but you have the right, not the obligation, to complete the transaction. If yo
by
selected by

Related questions

Where online can I find future tips for investing in stock market companies?

Description : Where online can I find future tips for investing in stock market companies?

Last Answer : There are a myriad of online resources for tips and advice about investing in the Stock Market. It should not be hard to find a good website to use. Try websites like MBAonline.com.

A process of deciding in the present what to do in the future about the best combination of crops and live stock to be raised

Description : A process of deciding in the present what to do in the future about the best combination of crops and live stock to be raised

Last Answer : Ans. Farm Planning

Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future? (A) Bombay Stock Exchange (BSE) (B) Indian Banks Association (IBA) (C) Securities Exchange Board of India (SEBI) (D) Reserve Bank of India (RBI)

Description : Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future? (A) Bombay Stock Exchange (BSE) (B) Indian Banks ... (IBA) (C) Securities Exchange Board of India (SEBI) (D) Reserve Bank of India (RBI)

Last Answer : Answer: Reserve Bank of India (RBI)

Which statement about long-term investments is not true? a. They will be held for more than one year. b. They are not currently used in the operation of the business. c. They include investments in stock of other companies and land held for future use. d. They can never include cash accounts.

Description : Which statement about long-term investments is not true? a. They will be held for more than one year. b. They are not currently used in the operation of the business. c. They include investments in stock of other companies and land held for future use. d. They can never include cash accounts.

Last Answer : d. They can never include cash accounts.

Why is it possible to buy an open call option with a strike price below the current stock price?

Description : Why is it possible to buy an open call option with a strike price below the current stock price?

Last Answer : answer:You would not make a profit because the cost of the option added to the price would still be more than the current price of the stock. This is what is called the premium. However if ... to rise and if the premium was low you could effectively acquire more stock control for a larger return.

What is a stock option and are they good?

Description : What is a stock option and are they good?

Last Answer : All fad diets work in the short term. The Csiro diet will work in helping you to lose weight, but the best way to keep weight off is through proper diet and exercise.

Who is offering a good rate on stock option loans?

Description : Who is offering a good rate on stock option loans?

Last Answer : A stock option loan is not a loan to obtain stocks. A stock option loan is a loan based on stocks you own yourself. You can obtain a stock option loan based on the value of your stocks, ... of the collateral's worth and as the borrower you get to keep the market appreciation of the stocks.

What are stock option charts for?

Description : What are stock option charts for?

Last Answer : Stock option charts is for you to see how the stocks are doing each day. It helps you to decide wether or not to invest in them. Through this, you may get lucky.

Where can I find information on stock option volatility?

Description : Where can I find information on stock option volatility?

Last Answer : There are quite a few web sites that list stock volatility including Bloomberg. They not only display information about each company, but a long history of their stock prices so you can see the long-term viability of a stock and its options.

What is a stock option accounting function?

Description : What is a stock option accounting function?

Last Answer : A stock option account is going to hold your stocks and keep track of whether they are up, or down, or balanced. It will also hold your funds, like mutual funds, and savings all accountable.

What options are available to me when my stock option vesting period is up?

Description : What options are available to me when my stock option vesting period is up?

Last Answer : You have three options once the vesting period is over. You can buy shares at their vested value and hold them for a long time, you can buy shares at their vested value and then sell them after the ... applicable), or you can buy shares at their vested value, keep some and sell the rest. Good luck!

What is a stock option agreement?

Description : What is a stock option agreement?

Last Answer : A stock option agreement is a contract between two parties that that allows one party to buy or sell a particular asset at an agreed upon price at a future date. Professional is usually a good way to go. That way you are sure all the details are fine tuned by someone who knows what they are doing.

What is the point of a stock option loan?

Description : What is the point of a stock option loan?

Last Answer : Well a stock option loan is an derivative financial instrument that specifies a contract between two parties for a furture transaction on an asset at a reference price. The buyer of the ... engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.

What is a stock option contract?

Description : What is a stock option contract?

Last Answer : A stock option contract gives the buyer the option to sell or buy for a certain price during a certain period of time. All stock option contracts represents 100 shares of the stock or index.

Mark the incorrect option a) The articles of stock such as plant and machinery, furniture and fixture are classed as “Dead stock” b) Consumable and perishable articles come under the term “Stores” c) Both the A and B d) None of these

Description : Mark the incorrect option a) The articles of stock such as plant and machinery, furniture and fixture are classed as “Dead stock” b) Consumable and perishable articles come under the term “Stores” c) Both the A and B d) None of these

Last Answer : d) None of these

What is future and option trading?

Description : What is future and option trading?

Last Answer : First of all, we need to distinguish between Futures and Options. Both are derivative instruments but futures are futures, options are options, they are not the same thing. Futures contracts are contracts that ... a commodity for a price on a certain date. Say...100,000 bushels of wheat on A

Has anyone ever tried buying high and selling low, in the stock market?

Description : Has anyone ever tried buying high and selling low, in the stock market?

Last Answer : A billionaire might try a move like that. Perhaps as a tax loss write off or as a way to influence the stock market in some twisted way to get an advantage.

What lessons regarding the stock market should be derived from the Game Stop fight?

Description : What lessons regarding the stock market should be derived from the Game Stop fight?

Last Answer : Lessons? That the market is largely just a casino for the rich, they won’t stand for normal people playing their game, and so-called “free market” advocates are really pro-regulation in any case that might lose them money. Also, fuck “the market” and capitalism.

Is anyone here interested in stock market investment?

Description : Is anyone here interested in stock market investment?

Last Answer : This isn’t a stock chat forum. Plenty of other places for that. No pump and dump discussions here.

What is happening to the Caracas General stock market?

Description : What is happening to the Caracas General stock market?

Last Answer : It’s called hyperinflation just like Germany in the 1930’s. It would take a wheelbarrow of money to buy a loaf of bread in Germany in the early 1930’s.

How would an impeachment affect the stock market?

Description : How would an impeachment affect the stock market?

Last Answer : Interesting question because the stock market is all on its own.

What is the relationship among Exchange rate, Trade balance, FII & FDI investments and stock market returns?

Description : What is the relationship among Exchange rate, Trade balance, FII & FDI investments and stock market returns?

Last Answer : answer:Anyone investing in a foreign economy needs to anticipate change in currency exchange rate when trying to determine an expected rate of return. If one predicts a market will return 10%, but the ... have a direct impact on exchange rate or stock market returns, but has an influential impact.

Can your country ever get a second stock market?

Description : Can your country ever get a second stock market?

Last Answer : answer:The United States has quite a few. And it has four primary listing exchanges: NYSE, NASDAQ, NYSE MKT, and NYSE Arca. There are also quite a few competing exchanges: BATS, Direct ... in that certain transactions are regulated by Provincial Governments. Makes it harder to create a new exchange.

Do you think the stock market will go down 50% in 2014 and why?

Description : Do you think the stock market will go down 50% in 2014 and why?

Last Answer : We are due for a correction but 50% is sensational “doom and gloom” I don’t think we’ll see that but you never know. The market is a savage unpredictable beast.

How much would it cost to buy one ( or minimum ) of every stock in the world stock market?

Description : How much would it cost to buy one ( or minimum ) of every stock in the world stock market?

Last Answer : There is no World Stock Market. Not saying that to be a jerk. Do you mean what it would cost to buy the minimum purchase possible in an index fund that covered a broad variety of stocks in each ... Russell Globall Index would be helpful? I am not sure of a company that offers a fund tracking that.

How do you explain to a child how the stock market works?

Description : How do you explain to a child how the stock market works?

Last Answer : answer:It could be like exchanging gifts for Christmas in school. You expect to get a better gift than the one you are sending out.Sometimes it will be and sometimes it wont.When it isn’t great you wish you had not got the other person such an expensive gift. Hope this analogy makes sense.

At the end of the year, would you rather have your salary 10% higher, or the stock market 10% higher?

Description : At the end of the year, would you rather have your salary 10% higher, or the stock market 10% higher?

Last Answer : My salary, obviously.

Are stock market & financial institutions 'evil'?

Description : Are stock market & financial institutions 'evil'?

Last Answer : Not in themselves but love of money is the root of all evil. People who run large companies and financial institutions are there to make money and they don’t examine very closely the effects of their actions on the world.

What is the best way to go about investing in the stock market long-term?

Description : What is the best way to go about investing in the stock market long-term?

Last Answer : answer:I would suggest checking out the https://personal.vanguard.com/us/home site. There is good information about beginning investors. You can answer some questions and also call the 800 number and talk with someone ... (stock, bond, S & P 500, international, for example) is a good way to start.

What is a $100 freeze-out for cards and the stock market?

Description : What is a $100 freeze-out for cards and the stock market?

Last Answer : answer:In poker, a freeze out is when you buy in for a fixed amount of money, and when you have lost your initial stake you are done; you can’t buy more chips. I don’t remember hearing this used around the stock market. Nor can I see how it applies.

How to make a quick profit in the stock market?

Description : How to make a quick profit in the stock market?

Last Answer : answer:Rather than start with real money, I would create a free portfolio online and test your ideas. Google Finance is one place to do that. http://www.google.com/finance/portfolio

Is investing in the stock market lawful for F1- International Students in the U.S.?

Description : Is investing in the stock market lawful for F1- International Students in the U.S.?

Last Answer : I don’t see why not. Most banks or brokers you set up with will ask your citizenship status, but I don’t think it makes a difference as to whether or not you can buy stock. Just call the broker you plan on using and ask.

I want to get started on the stock market, What do I do?

Description : I want to get started on the stock market, What do I do?

Last Answer : answer:You can put some money with a company like Fidelity. Their webiste has information on stocks, if you want to do research on the stocks you are interested in. You can type in the ... can buy energy funds, health care funds, international funds, etc. Here is their website www.fidelity.com

What's the best way to go about investing in the stock Market?

Description : What's the best way to go about investing in the stock Market?

Last Answer : Don’t bother trying to play the market by buying individual shares, just put your money in an equity fund (there are lots of types) and let the experts do it.

Is there a specific college class on investing/stock market?

Description : Is there a specific college class on investing/stock market?

Last Answer : The Motley Fool Investment Workbook The Motley Fool Personal FInancaeWorkbook The Motley Fool is a real good resource.

Stock market question, what are some stock trends that you think are coming?

Description : Stock market question, what are some stock trends that you think are coming?

Last Answer : Hipster Puppies. Whole tragedies of them.

How do natural disasters affect the stock market?

Description : How do natural disasters affect the stock market?

Last Answer : I'm no financial expert, but I believe investors have so little confidence in the health of the national and world economy nowadays that they sell shares at the slightest hint of anything that might ... contribute huge sums of money and manpower to disaster aid, it places a strain on our economy.

How does investing in the stock market create wealth?

Description : How does investing in the stock market create wealth?

Last Answer : Historically the securities market has outperformed other instruments.

Is it time to end the stock market... and put a close to non-stop expansion in America?

Description : Is it time to end the stock market... and put a close to non-stop expansion in America?

Last Answer : No.

What is the best free online virtual stock market trading game?

Description : What is the best free online virtual stock market trading game?

Last Answer : Try vse.marketwatch.com I have been playing this for months. Love it.

What time does the stock market open east coast time?

Description : What time does the stock market open east coast time?

Last Answer : 9:30 am to 4:00pm New York Time. Star for me.

Who determines share price quotes in the stock market?

Description : Who determines share price quotes in the stock market?

Last Answer : It takes two to tango Both the buyer and seller .the seller is willing to let go of his shares at a certain price and the buyer is willing to accept the shares at that price. Each buyer/ ... will probably take or he might say no and wait for another garage sale to sell at his desired price

What's the best free internet stock market simulation?

Description : What's the best free internet stock market simulation?

Last Answer : wallstreetsurvivor.com.

Can anyone explain to me how to be part of the stock market?

Description : Can anyone explain to me how to be part of the stock market?

Last Answer : There is no way that you should consider buying stock if your understanding of the market is such that you look for advice here. There are many books and courses available that explain ... very volatile and unpredictable market now where even the world's best traders are declaring trading losses.

If you dabble in the stock market, do you have any choice picks of cheap stocks that look like they're on the rise?

Description : If you dabble in the stock market, do you have any choice picks of cheap stocks that look like they're on the rise?

Last Answer : CHKE

Is the stock market really necessary and why?

Description : Is the stock market really necessary and why?

Last Answer : FYI You dont need a lot of money to make money in the stock market.

is the stock market overpriced right now?

Description : is the stock market overpriced right now?

Last Answer : Obviously, no one can really know this with any certainty. But I'd say "it's not overpriced very much, if at all." But I'm not an analyst. Just a amateur investor.