Definitions for oil future
oil fu·ture

Princeton's WordNetRate this definition:0.0 / 0 votes

1. oil future, petroleum futurenoun

   petroleum bought or sold at an agreed price for delivery at a specified future date

WikipediaRate this definition:0.0 / 0 votes

1. oil future

   In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the forward price. The specified time in the future when delivery and payment occur is known as the delivery date. Because it derives its value from the value of the underlying asset, a futures contract is a derivative. Contracts are traded at futures exchanges, which act as a marketplace between buyers and sellers. The buyer of a contract is said to be the long position holder and the selling party is said to be the short position holder. As both parties risk their counter-party reneging if the price goes against them, the contract may involve both parties lodging as security a margin of the value of the contract with a mutually trusted third party. For example, in gold futures trading, the margin varies between 2% and 20% depending on the volatility of the spot market.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.The first futures contracts were negotiated for agricultural commodities, and later futures contracts were negotiated for natural resources such as oil. Financial futures were introduced in 1972, and in recent decades, currency futures, interest rate futures, stock market index futures, and cryptocurrency inverse futures and perpetual futures have played an increasingly large role in the overall futures markets. Even organ futures have been proposed to increase the supply of transplant organs. The original use of futures contracts was to mitigate the risk of price or exchange rate movements by allowing parties to fix prices or rates in advance for future transactions. This could be advantageous when (for example) a party expects to receive payment in foreign currency in the future and wishes to guard against an unfavorable movement of the currency in the interval before payment is received. However, futures contracts also offer opportunities for speculation in that a trader who predicts that the price of an asset will move in a particular direction can contract to buy or sell it in the future at a price which (if the prediction is correct) will yield a profit. In particular, if the speculator is able to profit, then the underlying commodity that the speculator traded would have been saved during a time of surplus and sold during a time of need, offering the consumers of the commodity a more favorable distribution of commodity over time.

ChatGPTRate this definition:0.0 / 0 votes

1. oil future

   An oil future is a type of derivative contract where the buyer and seller agree to exchange a specified amount of oil at a predetermined price on a set future date. These contracts are traded on futures exchanges and are often used by producers and marketers to manage risk associated with fluctuating oil prices. It can also be used by speculators making bets on the future direction of oil prices.

Matched Categories

1. • Future

How to pronounce oil future?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say oil future in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of oil future in Chaldean Numerology is: 6

2. Pythagorean Numerology

   The numerical value of oil future in Pythagorean Numerology is: 1

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=oil future
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Oil_Future
3. ^ ChatGPT
   https://chat.openai.com