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A contract will be 100 units
-----Original Message-----
From: <uhehs@xxxxxxxx>
Date: Thu, 18 Mar 2004 16:28:40
To:<Metastockusers@xxxxxxxxxxxxxxx>
Subject: RE: [Metastockusers] Futures / Options comparison
So wait, I have a current quote on YM M4 as 10,296.
Can you explain the logistics of how it cost per contract, etc.
I assume $10,296 per contract? How about buying the minis?
-----Original Message-----
From: Jay T [mailto:JaysTownsend@xxxxxxx]
Sent: Thursday, March 18, 2004 3:48 PM
To: Metastockusers@xxxxxxxxxxxxxxx
Subject: Re: [Metastockusers] Futures / Options comparison
A future contract is an option/contract to buy or sell. An option on a future is an option on an option.
Theoretically the price of a future contract is the current cash price, plus any storage cost (for hard futures) through to expiration, plus any interest charges that would be incurred if you had to borrow money to purchase the futures contract through to expiration. Some folks trade solely on the disparity between this theory and the price difference in the markets - a future to current price arbitrage.
You can buy a June, September or December contract based on your predictions. For hard commodities if you carry the contract through to the expiration date you take delivery of the goods (box car full of wheat on a wheat contract, for example). That isn't as bad as it sounds - they don't deliver it to your front door. For financial futures you get your account credited or debited the difference in the value of the contract at the time of expiration vs. what you paid for it. In financials it's really 'legal' Las Vegas time, in hard goods it's delivery time.
Jay
----- Original Message -----
From: uhehs@xxxxxxxx
To: Equismetastock@xxxxxxxxxxxxxx ; Metastockusers@xxxxxxxxxxxxxx ; Sunday_Traders@xxxxxxxxxxxxxx
Sent: Thursday, March 18, 2004 10:09 AM
Subject: [Metastockusers] Futures / Options comparison
As a rookie on the Futures scene:
Do futures have a diminishing time value component like stock options do?
Am I able to buy and series I want? EX: Can I buy out to June, September or December based on my predictions?
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