What Are Futures? Where Can They Be Traded And Can They Be Traded Online?
Answers:
Futures are an necessity to buy or trade something on a one date. Some futures are "physically settled", explanation that if you allow the futures to expire you will any receive (if you are the buyer) or you will enjoy to deliver (if you are the seller) the commodity underlying the contract. For example, wheat futures on the Chicago Board of Trade are for 5,000 bushel of a demanding category and type of wheat to be deliver surrounded by Chicago.
Futures on financial instruments are typically "cash-settled" import that upon expiration, you are salaried, or inevitability to income, a brass amount base upon whether the price of the financial instrument "settles" at a price more favorable than when you traded the contract. S&P 500 futures contracts trade on the Chicago Mercantile Exchange.
Like adjectives financial products, you will inevitability a broker to trade futures. Technically, the broker is call a "futures commission merchant" unless you use an "introducing broker". For online trading of futures, I know interactivebrokers.com best. There are several other online futures brokers.
Futures are when someone buys something (like grease or lumber) at a correct price surrounded by the adjectives.