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Stock future |
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Stock futureIn agreement between a buyer and a seller to exchange an amount of cash at a fixed future date (the settlement date) that reflects the difference between the initial traded price and the price of the stock on the settlement date.For instance, buying one stock future contract of Vodafone at 230p represents 1,000 shares. If the shares are at 231p on the settlement date, the owner of the stock future would have made a profit of £10 (1,000 x 1p).The main feature of stock futures is 'leverage'. In the above example, it would cost £2,300 to buy 1,000 Vodafone shares, excluding commission and stamp duty. To get the same exposure, you'd only have to buy one stock future contract which might cost around £230.Similar MatchesFuturesFuturesA term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange. London International Financial Futures and Options Exchange (LIFFE)London International Financial Futures and Options Exchange (LIFFE)A leading market for trading options and futures on euro money market derivatives. Expected future cash flowsExpected future cash flowsProjected future cash flows associated with an asset. Futures Commission MerchantFutures Commission MerchantIn the US, an individual or organisation accepting orders to buy or sell futures contracts or futures options, and accepting payment for his services. FCMs must be registered with the CFTC and the NFA. Future InterestFuture InterestA present interest, but only a future right to possession and enjoyment of the land, such as a remainder interest, reversionary interest, etc. Further SuggestionsFutures contractFutures market Commodity futures contract Future value Index futures Stock Index Future futures contract Futures contract multiple Currency future Future Acquired Property Rolling of Futures New York Futures Exchange (NYFE) Futures market Theoretical futures price Commodity Futures Trading Commission Futures Industry Association Tokyo International Financial Futures Exchange Foreign currency futures contract Future investment opportunities futures Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) Commodity Futures Trading Commission (CFTC) London International Financial Futures and Options Exchange Underlying futures contract Managed Futures |
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