This is a #short video to show the inverse correlation between the VIX (Fear Index), and the S&P 500. Hope you enjoy!
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Jun
20
Aug
18
A futures contract rollover is used by traders to switch from the current month which is closer to expiration into a different contract expiring in a later month. Unlike stocks, a futures contract has an expiration date. Futures are rolled over or transferred to a new month. This helps prevent the obligations and costs linked with the contract settlement. A futures contract is normally settled through physical or cash settlements.
Reasons for Futures Rollover
When you roll a futures contract, you are essentially prolonging the maturity or expiration of your initial position and using the same underlying position in order to start a new contract which can be held for a longer term. This way, the trader can retain their initial risk position even if the initial contract has passed its expiration date (this is important because a futures contract can only have limited expiration dates). The roll is usually executed shortly prior to the expiry of the original contract and after loss or gain on the initial contract is settled.
Confirm Controlling Orders
If the contract is physically delivered, the position needs to be closed out prior to the first notice day. However, in the case of cash-settled contracts, the closure needs to happen before the final trading day. Normally, contracts are closed through cash, with the investor simultaneously entering the same contract having a further-out expiration date.
Jun
14
Introduction
The mania of meme stocks that started in January with GameStop Corp, shows no signs of slowing down.
The 8th of June saw meme stocks, such as Wendy’s, Clover Health, and AMC Entertainment, go up for a second consecutive day, thanks to the innuendos caused on social media that led to the Wall Street rumblings ever since the start of 2021.
May
26
Introduction
The universe of futures presents highly leveraged opportunities. However, if you are a trader considering futures trading, you should have a fundamental understanding of the process in which futures are taxed. In this article, we will be covering exactly that.
How are Futures Taxed?
Compared to equity traders, futures traders benefit from a more favorable treatment of taxes. According to section 1256 of the IRC (Internal Revenue Code), any futures contract traded on a U.S exchange, foreign currency contract, dealer equities option, dealer securities futures contract, or non-equity options contract are taxed at 60% long-term capital gains rates and 40% short-term capital gains rates (60/40) - regardless of how long the trade was actually held.
Apr
19
Even if you are relatively new to trading, there is a fair chance that someone has brought a Virtual Private Server (VPS) to your attention and that it is highly beneficial for trading. Even though a VPS is usually associated with website hosting, it does have several advantages when it comes to trading – stocks, futures and forex trading, in particular.
What is VPS?
A VPS (Virtual Private Server) is a unique kind of server belonging to a computer which contains multiple other VPSs. Even though these servers are housed on the same system, each one can function independently.
If you have your own VPS, you can then install your preferred operating system, reboot the system, and essentially enjoy complete control as if your server was the only one on the machine. For every month, you get a specific amount of RAM, space, and transfer allowance. Moreover, owing to its independent power supply, a VPS promises convenience, stability, and flexibility.
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