A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
Bitshares 101 Focus/Resources Section for New Crypto Folks now included near the end of each post - starting just prior to Christmas 2017. BTS is a Decentralized Exchange and much more. Very undervalued!
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
' Futures Contract ' ?
--
A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. Futures contracts are standardized to facilitate trading on a futures exchange and, depending on the underlying asset being traded, detail the quality and quantity of the commodity.
--
Breaking Down...
' Futures Contract ' :
--
Some futures contracts may call for physical delivery of the asset, while others are settled in cash.
The terms "futures contract" and "futures" refer to essentially the same thing. For example, you might hear somebody say he bought oil futures, which means the same thing as an oil futures contract. To get more specific, one could say that a futures contract refers only to the specific characteristics of the underlying asset being traded, while "futures" is more general and can also refer to the overall market as in: "He's a futures trader."
-- Example of Futures Contracts:
Futures contracts are used by two categories of market participants: hedgers and speculators. Producers or purchasers of an underlying asset hedge or guarantee the price at which the commodity is sold or purchased, while portfolio managers or traders may also make a bet on the price movements of an underlying asset using futures.
Many different assets have futures contracts available. Futures contracts on dozens of different major stock market indices around the world are traded, as well as futures on the major currency pairs and major interest rates. As for commodities, a large number of contracts are available for just about every commodity produced. For example, industrial metals, precious metals, oil, natural gas and other energy products, oils, seeds, grains, livestock and even carbon credits all have tradable futures contracts available.
-- Mechanics of a Futures Contract:
Imagine an oil producer plans to produce 1 million barrels of oil ready for delivery in exactly 365 days. Assume the current price is $50 per barrel. The producer could take a gamble, produce the oil, and then sell it at the current market prices one year from today. Given the volatility of oil prices, the market price at that time could be at any level. Instead of taking chances, the oil producer could lock-in a guaranteed sale price by entering into a futures contract. A mathematical model is used to price futures, which takes into account the current spot price, the risk-free rate of return, time to maturity, storage costs, dividends, dividend yields and convenience yields. Assume that the one-year oil futures contracts are priced at $53 per barrel. By entering into this contract, in one year, the producer is obligated to deliver 1 million barrels of oil and is guaranteed to receive $53 million. The $53 price per barrel is received regardless of where spot market prices are at the time.
Your Friend in Liberty, Barry.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
Bitshares 101 Focus/Resources Section:
for New Crypto Folks.
https://bitshares.org/
--
-- Bitshares is a Trading platform, and a LOT more.... designed by blockchain wizard here Dan Larimer - @dan / @dantheman.
I've blogged on him, and BTS many many times.
It's a place you can use that is decentralized, with an active community, to use trading lessons like this, that we are learning together.
Just a few of my past $BTS blogs....
to help you apply lessons today!
--
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/steem/@barrydutton/just-powered-up-more-steem-a-bunch-this-week-onwards-we-steem
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
Bitshares 101 Focus/Resources Section for New Crypto Folks now included near the end of each post - starting just prior to Christmas 2017. BTS is a Decentralized Exchange and much more. Very undervalued!
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
' Futures Contract ' ?
--
A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. Futures contracts are standardized to facilitate trading on a futures exchange and, depending on the underlying asset being traded, detail the quality and quantity of the commodity.
--
Breaking Down...
' Futures Contract ' :
--
Some futures contracts may call for physical delivery of the asset, while others are settled in cash.
The terms "futures contract" and "futures" refer to essentially the same thing. For example, you might hear somebody say he bought oil futures, which means the same thing as an oil futures contract. To get more specific, one could say that a futures contract refers only to the specific characteristics of the underlying asset being traded, while "futures" is more general and can also refer to the overall market as in: "He's a futures trader."
-- Example of Futures Contracts:
Futures contracts are used by two categories of market participants: hedgers and speculators. Producers or purchasers of an underlying asset hedge or guarantee the price at which the commodity is sold or purchased, while portfolio managers or traders may also make a bet on the price movements of an underlying asset using futures.
Many different assets have futures contracts available. Futures contracts on dozens of different major stock market indices around the world are traded, as well as futures on the major currency pairs and major interest rates. As for commodities, a large number of contracts are available for just about every commodity produced. For example, industrial metals, precious metals, oil, natural gas and other energy products, oils, seeds, grains, livestock and even carbon credits all have tradable futures contracts available.
-- Mechanics of a Futures Contract:
Imagine an oil producer plans to produce 1 million barrels of oil ready for delivery in exactly 365 days. Assume the current price is $50 per barrel. The producer could take a gamble, produce the oil, and then sell it at the current market prices one year from today. Given the volatility of oil prices, the market price at that time could be at any level. Instead of taking chances, the oil producer could lock-in a guaranteed sale price by entering into a futures contract. A mathematical model is used to price futures, which takes into account the current spot price, the risk-free rate of return, time to maturity, storage costs, dividends, dividend yields and convenience yields. Assume that the one-year oil futures contracts are priced at $53 per barrel. By entering into this contract, in one year, the producer is obligated to deliver 1 million barrels of oil and is guaranteed to receive $53 million. The $53 price per barrel is received regardless of where spot market prices are at the time.
Your Friend in Liberty, Barry.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
Bitshares 101 Focus/Resources Section:
for New Crypto Folks.
https://bitshares.org/
--
-- Bitshares is a Trading platform, and a LOT more.... designed by blockchain wizard here Dan Larimer - @dan / @dantheman.
I've blogged on him, and BTS many many times.
It's a place you can use that is decentralized, with an active community, to use trading lessons like this, that we are learning together.
Just a few of my past $BTS blogs....
to help you apply lessons today!
--
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/steem/@barrydutton/just-powered-up-more-steem-a-bunch-this-week-onwards-we-steem
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
@barrydutton I had not idea what a future contract was! Very informative post! Thanks for sharing! :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
That's how I know this series is helping people, comments like that.
Thanks man
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Informative Article.
Thanks for share.
@barrydutton
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for the comments today!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The Best way and the most reliable one - find the gems (fundamentally strong projects which have strong team, a product in the mind to solve an important issue with high utility value). Ideally, it should have a reasonably deep moat vs. competitors. This is the recipie for success! Earlier or later the market will recongize the value of the project and will award you with immence profits. Real life example, RLC token (iExec) >+100% today! This pick was included in our portfolio yesterday and published here https://steemit.com/crypto/@p2port.com/crypto-portfolio-high-quality-crypto-assets-for-long-term-growth-created-on-11-january-2018
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Why do you reply to everyone and ensure a link to your posts are included every time?
It is spammy, you will be flagged for this, stop it.
Please reply so I know you read this, you have been at this all day.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
We assume that we have a right to express our thoughts on the topic. Cannot see the reason behind your anger, Barry! Thanx
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hallo
Na Ja
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
http://www.ibtimes.com/why-looprings-price-could-more-triple-end-2018-2640987
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Don't spam my post, try making an actual comment, what is wrong with you people ????
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This is an awesome article very informative. Thanks for sharing this to everyone😊
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks Janice.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for posting this @barrydutton. The idea of an oil producer locking in a future price for it's products seems reasonable, but inately in my gut, I've always despised the idea of commodities futures trading mostly because the people I've encountered who discuss it produce nothing and merely act as parasites swarming to feed off of government created trading exploits that "unlicensed" (and/or non-institutional non-bank) traders don't have regular equal access to.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Govt's are the ultimate parasites.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit