What are stocks options and futures
On the stock market, ETFs trade like stocks but more closely resemble mutual funds. They hold stocks, commodities, and other assets while remaining tradeable themselves. Because they reflect an index, their prices change throughout the day. In contrast, mutual funds have their net-asset values NAV calculated at the end of the business day. ETFs combine the flexibility of stocks with the diversification inherent in mutual funds. That, in addition to their tax efficiency and low costs, make ETFs an appealing choice for many traders.
These highly versatile securities represent sellable contracts. Due to their high liquidity, options usually carry more leverage than stocks but require less capital, giving traders with less buying power more choices when diversifying their portfolios.
Futures, like options, consist of sellable contracts. However, unlike options, futures require the holder to fulfill the terms of the contract at the time of expiration. In practice, traders can still buy or sell futures in much the same way as options. Lightspeed Trader, our trading system for day traders , allows our clients to trade and maintain stocks, ETFs, and options all in the same place.
To learn more about the products and services we offer, call us at 1. How are Stock Futures priced? What are the opportunities offered by Stock Futures? How are Stock Futures settled? Can I square up my position? When am I required to pay initial margin to my broker? Do I have to pay mark-to-market margin? What are the profits and losses in case of a Stock Futures position? What is the market lot for Stock Futures? Why are the market lots different for different stocks?
What are the different contract months available for trading?