jenmyers58
New member
Hi, Folks
I would like to share you some basics difference in Forex or trade on futures ,
“There is usually a difference between the spot price of gold and the future price. The future price, which we also display on this page, is used for futures contracts and represents the price to be paid on the date of a delivery of gold in the future. In normal markets, the futures price for gold is higher than the spot.”
The main differences between commodity spot prices and futures prices are the delivery dates.
The spot price of a commodity is the current cash cost of it for immediate purchase and delivery.
The futures price locks in the cost of the commodity that will be delivered at some point other than the present—usually, some months hence.
The difference between the spot price and futures price in the market is called the basis.
Broadly speaking, futures prices and spot prices are different numbers because the market is always forward-looking.
I Would like to suggested you that It's actually more the other way round: Spot prices influence futures prices.
A futures contract price is commonly determined using the spot price of a commodity—as the starting point, at least. Futures prices also reflect expected changes in supply and demand, the risk-free rate of return for the holder of the commodity, and the costs of storage and transportation (if the underlying asset is a commodity) until the futures contract matures and the transaction actually occurs.
Trading on best spot market because future market also depends on current market price which is current price if it is going down then future price will automatically go down.
More recently, the rate has been increased by the Reserve Bank of the United States of America, which is called the Fed.On that day, there was a lot of ups and downs in the price of gold, remember you should trade only on low and even movement.
Since the futures contract comes under a derivative, you are more likely to lose
Understand my one thing, if I tell you that an item like gold will be up ten percent after a month, then it is not necessary that it can be as big only by the end of the contract, in a day or two, the price will increase or It may also happen that your contract expires but the price should not increase.
This means that the chances of loss are high. Let me tell you that the contract expires on the last Thursday of every month. But I encourage you to trade on the spot market only.
Hope you will be satisfied with my information and my information will be useful for you. You can also trade on the market by joining me. Thank you.
I would like to share you some basics difference in Forex or trade on futures ,
“There is usually a difference between the spot price of gold and the future price. The future price, which we also display on this page, is used for futures contracts and represents the price to be paid on the date of a delivery of gold in the future. In normal markets, the futures price for gold is higher than the spot.”
The main differences between commodity spot prices and futures prices are the delivery dates.
The spot price of a commodity is the current cash cost of it for immediate purchase and delivery.
The futures price locks in the cost of the commodity that will be delivered at some point other than the present—usually, some months hence.
The difference between the spot price and futures price in the market is called the basis.
Broadly speaking, futures prices and spot prices are different numbers because the market is always forward-looking.
I Would like to suggested you that It's actually more the other way round: Spot prices influence futures prices.
A futures contract price is commonly determined using the spot price of a commodity—as the starting point, at least. Futures prices also reflect expected changes in supply and demand, the risk-free rate of return for the holder of the commodity, and the costs of storage and transportation (if the underlying asset is a commodity) until the futures contract matures and the transaction actually occurs.
Trading on best spot market because future market also depends on current market price which is current price if it is going down then future price will automatically go down.
More recently, the rate has been increased by the Reserve Bank of the United States of America, which is called the Fed.On that day, there was a lot of ups and downs in the price of gold, remember you should trade only on low and even movement.
Since the futures contract comes under a derivative, you are more likely to lose
Understand my one thing, if I tell you that an item like gold will be up ten percent after a month, then it is not necessary that it can be as big only by the end of the contract, in a day or two, the price will increase or It may also happen that your contract expires but the price should not increase.
This means that the chances of loss are high. Let me tell you that the contract expires on the last Thursday of every month. But I encourage you to trade on the spot market only.
Hope you will be satisfied with my information and my information will be useful for you. You can also trade on the market by joining me. Thank you.
