What is the only variable on futures contracts?

avery · Apprentice Joined: 31 Oct 2005 Posts: 1

Any investment carries with it a risk in part. That is why you need to make sure everything goes as you plan, and that you make a good plan. You always need to have a good strategy, and one of these is ensuring the value of your portfolio. Fundamental analysis can help you in that sense with futures, because it helps you predict the movement of prices. There is one variable when it comes to futures contracts and it is an underlying price that can change until the date on the contract arrives.

micky · Apprentice Joined: 11 Feb 2005 Posts: 1

Forecasting price trends is one of the most important tasks for you, and it seems to me that you definitely need to use fundamental analysis for such purposes. You can use good positioning to see current trends, review past trends, and based on that figure out what will be price trends in the future. The advantage of a fundamental analysis is to generate a single security value for an investor to compare it with the current price. It is extremely important for him, as then he can see how his security, but also the stock that has it stands financially.

sean · Apprentice Joined: 13 Jun 2005 Posts: 1

Making a target investment mix is my suggestion and such plan might give you a good profits. Also, good positioning gives you a good chance to react quickly. Finally, with good positioning on the futures, you will get better insight into the way all the prices work on that market, and by knowing them better, you will have better idea where they are headed. Now, there main difference between futures and forwards is that unlike with the former, the latter does not have margin and is traded OTC, over-the-counter.

What is the only variable on futures contracts?

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