Resources and Tips
Quick links to all that you need to know about Futures & Options
Each futures market has contract specifications that specify the markets unit, price quotation, trading hours, listed months, settlement procedures, and price limits. This allows for consistency and uniformity in the terms of the contract.
The contract month is the month in which the futures contract requires delivery of the commodity. Most contracts are offset or closed before that time. Delivery is rarely made.
Margin is good faith money. Futures trading is a zero-sum game: for every winner, there is a loser and vice versa. Margin creates leverage, which is what makes commodity trading unique.
A price limit is the maximum price range permitted for a futures contract in each trading session. When markets hit the price limit, different actions occur depending on the product being traded. Markets may temporarily halt until price limits can be expanded, remain in a limit condition or stop trading for the day, based on regulatory rules.