Mindblown: a blog about philosophy.
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How To Trade Futures
Trading futures involves buying or selling a standardized contract that specifies the delivery of a specific underlying asset, such as commodities, currencies, or financial instruments, at a specific date and price. Here are the basic steps to trade futures: Remember, futures trading involves risks, and you should only trade with money you can afford to…
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How To Buy Gold
You can buy gold using a number of different methods. Which one you choose will depend on your circumstances and your preferences. Here are some of the most common ways to buy gold: Whichever of these methods you choose to buy gold, you need to understand the risks associated with investing in gold. Do your…
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What is a Futures Market?
A futures market is a type of financial market where participants trade contracts for the delivery of a specific asset or commodity at a predetermined future date and price. Futures contracts are standardized agreements between buyers and sellers to exchange an asset or commodity at a specific price and date in the future. Futures markets…
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What is a Futures Contract?
A futures contract is a standardized agreement between two parties to buy or sell a specific asset or commodity at a predetermined price and date in the future. The asset or commodity being traded can be anything from agricultural products, precious metals, energy products, or financial instruments. The price and date for delivery of the…
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What is an Underlying Asset in the futures market?
In the futures market, the underlying asset is the actual commodity or financial instrument that the futures contract represents. It is the asset or commodity that the buyer and seller agree to exchange at a specific price and date in the future. For example, if a futures contract is for crude oil, then crude oil…
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Futures Contract vs. Forward Contract
A futures contract and a forward contract are both agreements to buy or sell an asset or commodity at a predetermined price and date in the future. However, there are some important differences between the two. In summary, futures contracts are standardized contracts traded on an exchange with standardized terms and high liquidity, while forward…
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What Happens If a Futures Contract Is Held Until It Expires?
If a futures contract is held until it expires, the buyer and seller are obligated to fulfill their respective obligations under the terms of the contract. At the expiration date of the contract, the buyer must take delivery of the underlying asset, while the seller must deliver the asset at the agreed-upon price. If the…
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What are the Mechanics of a Futures Contract?
The mechanics of a futures contract involve an agreement for the purchase or sale of an asset at a future date. For example, an oil producer has plans to produce a million barrels of oil over the coming year, which will be ready for delivery in 12 months. The producer could enter into a contract…
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The Order Book Explained
The order book is a record of all the buy and sell orders for a particular financial instrument, such as stocks, bonds, commodities, or cryptocurrencies, on a trading platform or exchange. The order book provides transparency and serves as a central repository of information for market participants. It is updated in real time which gives…
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What Is Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography (the practice of secure communication) for security and operates independently of a central bank. Unlike traditional currencies, which are physical objects such as paper money or coins, cryptocurrencies exist only in digital form and are typically decentralized, meaning they are not controlled by any government…
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