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Options and Futures

Spreading

In finance, there is a technique called "arbitrage" that involves buying and selling two related markets at the same time in hopes of making a profit. This can be done in various ways, such as buying one futures contract and selling another of the same commodity but with a different delivery month. Alternatively, one could buy and sell the same delivery month on different futures exchanges, or even buy a certain delivery month on one market and sell the same on a related market.

Price Limit Order

A limit order is a directive from a customer to a broker, detailing the specific price at which they are willing to buy or sell a security. It acts as a safeguard against un...

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Position Limit

A crucial aspect of futures trading involves understanding the concept of position limits. These limits, set by the Commodity Futures Trading Commission and/or the exchange,...

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Gamma

Delta, also known as the option's hedge ratio, is a vital measure in finance that indicates the rate of change in an option's price in response to a unit change in the under...

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Liquid

Liquidity refers to the ability of a security or commodity market to handle large transactions without significantly impacting the market price. This is an important conside...

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