What Is a Futures Bundle? A futures bundle is a type of futures order. The bundle enables an investor to simultaneously purchase or sell a predefined number of futures contracts in each consecutive quarterly delivery month for one or more years. This single purchase of multiple futures contracts is referred to as buying futures strips.
What Is a Futures Exchange? A futures exchange is a marketplace where a diverse range of commodities futures, index futures, and options on futures contracts are bought and sold. Those who are allowed access to the exchange are brokers and commercial traders who are members of the exchange. Members need to be registered with the
What Is a Futures Market? A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date. Futures are exchange-traded derivatives contracts that lock in future delivery of a commodity or security at a price set today. Examples of futures markets are the
What Is a Futures Pack? Currency futures are futures contracts for currencies that specify the price of exchanging one currency for another at a future date. A futures pack is a contract to buy a set number of Eurodollars at a pre-established price in four consecutive delivery months. It is a variation on a Eurodollars futures
What Is a Futures Spread? A futures spread is an arbitrage technique in which a trader takes two positions on a commodity to capitalize on a discrepancy in price. In a futures spread, the trader completes a unit trade, with both a long and short position. Key Takeaways A futures spread is an arbitrage technique
What Is a Futures Strip? A futures strip is the buying or selling of futures contracts in sequential delivery months traded as a single transaction. This is most common in the energy futures market. Key Takeaways Futures strips are the buying or selling of futures contracts in sequential delivery months.They are typically used to lock
What Is a Full-Time Student? A full-time student is a legal tax status that is important for determining dependency exemptions. Full-time status is based on what the individual’s school considers full-time. There are different tax filing requirements required for both the full-time student and parents or guardians who are claiming that student as a dependent
What Is a Fully Amortizing Payment? A fully amortizing payment refers to a type of periodic repayment on a debt. If the borrower makes payments according to the loan’s amortization schedule, the debt is fully paid off by the end of its set term. If the loan is a fixed-rate loan, each fully amortizing payment is
What are Fully Diluted Shares? Fully diluted shares are the total number of common shares of a company that will be outstanding and available to trade on the open market after all possible sources of conversion, such as convertible bonds and employee stock options, are exercised. Fully diluted shares include not only those which are
What Is a Fully Drawn Advance? A fully drawn advance is a type of loan used in Australia. Although they can be customized to suit various needs, fully drawn advances are commonly used as long-term business loans. Key Takeaways A fully drawn advance is a type of long-term loan that is popular in Australia.They are
