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In finance, a single-stock future (SSF) is a type of futures contract between two parties to exchange a specified number of stocks in a company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts can be later traded on a futures exchange.
Stocks held longer than one year qualify for favorable capital gains tax treatment, while stocks held one year or less are taxed at ordinary income. [7] However, proceeds from index futures contracts traded in the short term are taxed 60 percent at the favorable capital gains rate, and only 40 percent as ordinary income. [8]
A stock future is a cash-settled futures contract on the value of a particular stock market index. Stock futures are one of the high risk trading instruments in the market. Stock market index futures are also used as indicators to determine market sentiment. [3]
If you ever watch the financial news before the stock market opens for the day's trading, you may hear about movements in the "stock futures." One of the main reasons that futures prices are ...
Stock futures trade six days a week — every day except Saturday — and are only closed for one hour per trading day, from 5:00 p.m. EST to 6:00 p.m. EST.
Those who spend enough time trading and reading about stocks will inevitably encounter futures. Put simply, futures are contractual agreements where two parties agree to buy or sell a fixed amount ...