Futures price

FUTURES PRICE - The price at which parties to a futures contract agree to transact upon the settlement ...
FUTURES-EQUIVALENT - A term frequently used with reference to speculative position limits for options o...

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Theoretical futures price
Also called the fair price, the equilibrium futures price. ...

Futures Price
(1) Commonly held to mean the price of a commodity for future delivery that is traded on a futures exchange. (2) The price of any futures contract.
Futures-equivalent ...

futures price: The set price of a futures contract on the delivery date.
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Oil Futures Prices out to 2019
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When the futures price is above the expected future spot price. Consequently, the price will decline to the spot price before the delivery date.
Continuous DisclosureExpand/Collapse ...

Theoretical futures price
The equilibrium futures price. Also called the fair price.
Theoretical spot rate curve ...

Holds that the futures price will be bid down to a level below the expected spot price.
Normal growth firms
Companies whose earnings grow at a constant rate.

[OTS] adjusted futures price The cash-price equivalent reflected in the current futures price.

Technical rally Short rise in securities or commodities futures prices in the face of a general declining trend.

In-the-money A put option that has a strike price higher than the underlying futures price, or a call option with a strike price lower than the underlying futures price.

Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry rate for some time interval.

" Backwardation A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month.

adjusted futures price The cash-price equivalent reflected in the price of a futures contract. Adjusted Gross Income The income used to determine an individual or couple.s federal income tax. The...

Index arbitrage An investment/trading strategy that exploits divergences between actual and theoretical futures prices. Index fund Investment fund designed to match the returns on a stockmarket index.

Hedge quality Measured by the R-square in a regression of spot rate changes on futures price changes.

Adjusted futures price
Adjusted gross income
Adjusted gross income (AGI)
Adjusted Gross Income - AGI
Adjusted present value (APV)
Adjusted Present Value - APV
Adjusting entry
Adjustment
Adjustment bureau
Adjustment date
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Nonetheless, several specifications have been proposed in the economic literature forstudying and forecasting oil price volatility, in particular examining boththe oil price term structure and ability of futures prices in predicting oilspot prices, ...

A pattern seen on a chart of a futures price. If a price rises (or falls) sharply and then iterates sideways it will draw a pattern like a f...(Read more)
Flat Yield
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Flat-top Butterfly
See 'condor spread'....

(2) The price of an option contract; also, in futures trading, the amount by which the futures price exceeds the price of the spot commodity.

Cox, Ingersoll and Ross (1981) and Jarrow and Oldfield (1981) suggest that daily margin payments on futures may cause forward and futures prices to diverge.

Theory about the movement of stock and commodity futures prices hypothesizing that past prices are of no use in forecasting future price movements.

Because stock-index futures are easier to trade than actual stocks, the futures prices often change before the underlying stock prices do.

pricing situation in which futures prices get progressively higher as maturities get progressively longer, creating negative spreads as contracts go farther out. The increases reflect carrying costs, including storage, financing, and insurance.

Describes an inevitable change in the relationship between cash and futures prices for instruments until delivery. Prior to delivery, the futures price and the cash price differ by the cost of carry.

An investment/trading strategy that exploits divergences between actual and theoretical futures prices.

Typically, the NYMEX futures prices tracks very closely the WTI spot price as above, although since the NYMEX futures contract for a given month expires 3 days before WTI spot trading for the same month ceases, ...

Normally, interest costs mean that futures prices are higher than spot prices, unless the markets expect the price of the commodity to fall over time, perhaps because there is a temporary bottleneck in supply.

Suppose there is constant risk-free interest rate r and the futures price F(t) of a particular underlying is log-normal with constant volatility σ.

A market condition in which futures prices are lower in the distant delivery months than in
the nearest delivery month. This situation may occur in when the costs of storing the product until eventual ...

A condition in the commodity market when Spot prices are lower than Futures prices.

Definition: [crh] Long-range direction of a security or commodity futures price, ...

BREAKEVEN POINT
The underlying futures price at which a given options strategy is
neither profitable nor unprofitable. For call options, it is the strike
price plus the premium. For put options, it is the strike price minus
the premium.

Regarding a futures contract, the difference between the cash price and the futures price observed in the market. Also, it is the price an investor pays for a security plus any out-of-pocket expenses.

Despite this risk the seller will go to great lengths to predict where the market is heading and along with the buyer will try to come up with a "futures price" that will best suit the situation.

Brent crude spot prices are available from several sources on the internet including WTRG and Bloomberg. Brent futures prices can be found at ICE Futures.
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Futures contract multiple
A constant set by an exchange, which when multiplied by the futures price gives the dollar value of a stock index futures contract.
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(2) In futures trading, the amount the futures price exceeds the price of the spot commodity.

The financial media often kick-start the trading day with a brief mention of the futures prices in relation to "fair value." You...
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A condition found in futures markets in which the spot price of underlying commodities is close to the futures price of the same contract.
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2. The difference between the cash price and the futures price of a given commodity.

For example, in the middle of winter the spot price of heating oil maybe higher than the futures price of heating oil in six months time, simply because demand has increased at that point in time.

Marking to market is a procedure followed by futures market clearing houses to rewrite futures contracts daily so that all future contracts for a given commodity and with a given maturity specify the same futures price.

Back Month Contract - A type of futures contract that expires in any month past the front month futures contract. The price of the first back month futures contract is often used along with the front month futures price to calculate the calender ...

Most equity futures are cash settled, which means the contract requires a cash amount to be paid on the settlement day, reflecting the difference between the initial futures price and the price of the underlying share or index when the futures ...

Arbitrage: The simultaneous purchase and sale of a commodity or security in different markets for a profit. The term arbitrage is used for a string of trading manoeuvres, exploiting the differences in spot prices, futures prices and interest ...

An "arbitrageur " simultaneously buys and sells a commodity or security in different markets. The term arbitrage is used for a whole string of complicated trading maneuvers, exploiting the differences in spot prices, futures prices and interest rates.

It is used to determine capital gains or losses for tax purposes when the stock is sold. Also, for a futures contract, the difference between the cash price and the futures price observed in the market.

An arbitrage position typically comprising a long cash position together with a short position in its respective futures contract, whereby the cash price plus the cost of carry of the underlying position is lower than the futures price.

Deflation occurs when there is an outright decline in the consumer price index (CPI) or producer price index (PPI). Raw materials, oil, base materials, copper, and the Commodity Research Bureau's non-financial futures price index will evidence ...

We’ve discussed this story extensively at Bourbon & Bayonets. A result of the dealer shortages has been the divergence between the spot and futures price of gold. Please refer to past issues for a more extensive explanation.

In a futures position, daily marking to market involves, for the holder of a long position, making payment from (receiving payment to) the margin account to (from) the exchange in the event of a futures price fall (rise).

In reference to IRAs, the basis is the balance within an IRA representing nondeductible contributions. Basis can also mean the difference between a commodity's cash price and its shortest duration futures price.

movements in the spot prices of the underlying asset. The concept is similar to a forward contract, except that trading is more formal and regulated. In fact, the price of a forward contract is often set with reference to the official futures price.

See also: Banks, Values, Expected return, Expense, Exercise price