Category : Market Basics

Introduction to the US Stock Markets: NYSE, AMEX and NASDAQ

A discussion on the New York Stock Exchange, AMEX and NASDAQ, which are major stock markets in the US and worldwide.

Major US Stock Indices : S&P500, Dow Jones, NASDAQ Composite Index

Stock indices like the Dow,S&P500 and Nasdaq Composite provide investors with a broad snapshot of how the US economy is performing.

Why Do Companies Issue Stock and Why People Invest in Them?

Public companies issue stocks, which are traded in the stock exchange, to raise capital for expansion. Public companies aim to maximize shareholder value.

What Are Derivative Contracts in the Financial Markets?

What Are Derivative Contracts. Derivative contracts are instruments that derive their values from the values of the underlying instruments upon which they are based.

Derivative Contract Definitions

Definitions of commonly used terms like futures contracts, futures options, swaps which are commonplace in the world of derivatives.

What are Futures Contracts?

Futures or futures contracts call for the purchase or sale of a financial or real asset at some future date, but at a price which is fixed today.

The Major Futures Markets : Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), EUREX

In the US, the 2 main futures exchanges are the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME). The CBOT is well known for its US Treasury notes and bonds futures contracts while the CME is commonly associated with the S&P500 and E-mini S&P500 futures contracts.

Hedging Using Index Stock Futures

Learn how a fund manager hedges his position in stocks using futures contracts so as to minimize his risk to uncertainties or surprises.

How To Choose A Futures Contract To Swing or Day Trade – Part 1

The major factors to consider for a newcomer in choosing a futures contract to swing or day trade.

Choosing a Futures Contract for Swing or Day Trading – Part 2

Major factors to consider for a newcomer to the futures markets in choosing a futures contract to trade.