Offers an investment book for buying and selling on wall street. While the stock you bought five years ago is the same stock
trading today, futures contracts have limited shelf lives, and are traded in a regular series of 'contract months' (also referred to as 'delivery months') that vary from
market to market. Offers an investment book for buying and selling on wall street.
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By contrast, when you buy and sell futures, you don't really own anything. Offers an investment book for buying and selling on wall street. You are, however, entering an agreement with the person you trade with--the reason futures are more precisely referred to as 'futures contracts.' When you buy a futures contract, you are agreeing to buy a commodity or financial instrument (crude oil or Treasury bonds, for example) at a specific price by a certain date in the future. The person on the other side of the trade is obliged to sell you ('deliver') that same commodity or financial instrument at the specified price by the specified date. However, if you sell your futures contract by a specific date, you offset your position with no further obligations and have either profited or lost on the trade. Offers an investment book for buying and selling on wall street.