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Futures
trading is simply buying or selling
a specified quantity and quality of a financial instrument to be
delivered or settled at a specified time in the future at a
price determined at the time of purchase and sale.
Institutional investors use futures contracts to hedge their
positions in the underlying stocks/commodities.
Two of the most important parameters in trading
future
contracts are:
1.
the price action driven by various factors including both
fundamental and technical;
2.
open interest.
to be continued. |
