Sentences with phrase «price of a commodity futures contract»

Part of the reason that the price of a commodity futures contract is not a prediction of the future price of the commodity is that many of the largest participants in the futures markets do not buy / sell futures contracts based on a forecast of what's going to happen to the price.

(A hedger is not interested in making a profit off the movements in price of a commodity futures contract, but rather in shifting his risk of loss on the commodity itself due to adverse price change.)

(e) Engage in manipulative acts or practices regarding the price of a commodity futures contract;

Not exact matches

Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.

CNBC's Jackie DeAngelis reports on commodities as several options and futures contracts expire Friday, and the factors supporting the price of oil.

The exchange - traded fund uses futures contracts to try to match the future price of the commodity.

Last week, on October 2, 2012, we locked in an 11 % gain on a swing trade in US Natural Gas Fund ($ UNG), a commodity ETF designed to roughly track the price of natural gas futures contracts.

Using daily closing prices for the most liquid contract for each of 35 (6 energy, 10 commodity, 6 government bond, 6 currency exchange rate and 7 equity index) futures contract series as available during January 1987 through December 2013, he finds that: Keep Reading

Here, I'll give you an overview of natural gas futures, including contract specifications, natural gas futures prices, and factors impacting the value of this commodity.

The second ETF on our watchlist for potential buy entry today is US Natural Gas Fund ETF ($ UNG), a commodity ETF that tracks the price of the natural gas futures contracts.

Two parties sign a contract to exchange a given amount of some asset — a commodity, say, or a currency — at some predetermined price in the future.

The steeper the contango, the worse the relative return on the rolling futures contracts compared to the spot price of the commodity.

If the market for a particular commodity suffers from strong, persistent contango, an ETF that buys futures contracts on that commodity will perform worse than the spot price of the commodity itself.

Investors who buy ETFs that use commodity futures contracts are sometimes surprised to see that the ETF does not move in lockstep with the price of the commodity as seen in the news, oil being a good example.

Futures also serve as underlying holdings of several ETFs, especially commodity funds, which do not buy the physical commodity, but track the futures contractFutures also serve as underlying holdings of several ETFs, especially commodity funds, which do not buy the physical commodity, but track the futures contractfutures contract price.

ICE Futures U.S. offers futures and options contracts on the Reuters Jefferies / CRB Index (RJ / CRB), developed originally in 1957, which continues to be the benchmark indicator of overall commodityFutures U.S. offers futures and options contracts on the Reuters Jefferies / CRB Index (RJ / CRB), developed originally in 1957, which continues to be the benchmark indicator of overall commodityfutures and options contracts on the Reuters Jefferies / CRB Index (RJ / CRB), developed originally in 1957, which continues to be the benchmark indicator of overall commodity price.

A commodity futures contract is an agreement between a buyer or end user, and a seller or producer to make or take delivery of a Commodity or Financial Futures contract of an Exchange traded contract of a specific size, grade and quality at an agreed upon price for a specific date in thcommodity futures contract is an agreement between a buyer or end user, and a seller or producer to make or take delivery of a Commodity or Financial Futures contract of an Exchange traded contract of a specific size, grade and quality at an agreed upon price for a specific date in the futures contract is an agreement between a buyer or end user, and a seller or producer to make or take delivery of a Commodity or Financial Futures contract of an Exchange traded contract of a specific size, grade and quality at an agreed upon price for a specific date in thCommodity or Financial Futures contract of an Exchange traded contract of a specific size, grade and quality at an agreed upon price for a specific date in the Futures contract of an Exchange traded contract of a specific size, grade and quality at an agreed upon price for a specific date in the future.

An option to buy a commodity, security or futures contract at a specified price anytime between now and the expiration date of the option contract.

An option to sell a commodity, security, or futures contract at a specified price at any time between now and the expiration of the option contract.

All of these commodities have standardized futures contracts and speculators and traders are constantly seeking profit making opportunities, while hedgers attempt to lock in favourable future trading price levels in the present trying to avoid risk.

What all commodity index funds do is buy a basket of futures contracts, usually near - month contracts, which should closely track the price in the here and now (also known as the «spot price») movement of the various commodities.

A hedger achieves protection against changing cash prices by purchasing (selling) futures contracts of the same or similar commodity and later offsetting that position by selling (purchasing) futures contracts of the same quantity and type as the initial transaction.

Futures are standardized contracts wherein you purchase commodities and other forms of financial instruments in today's price, to be traded in a specific time in the future.

Spot prices differ from futures prices, in that a futures contract specifies an amount of money to be paid for a deliverable commodity at a later date, whereas spot prices can be thought of as the amount of money a buyer would pay a producer for the former to throw the commodity into the back of the latter's truck right now.

Because there are so many different types of options and futures contracts, an investor can hedge against nearly anything, including a stock, commodity price, interest rate or currency.

As a form of investment there are contracts to buy commodities at a specific time in the future or at a specific price.

The futures indexes measure the prices of these physical commodities by measuring the price of futures contracts on the underlying commodities.

Using daily and monthly futures index levels and contract prices for the 24 commodities in the S&P GSCI as available during January 1979 through June 2012, along with contemporaneous returns for a broad sample of U.S. stocks, they find that: Keep Reading

Futures contracts, or simply «futures,» were created to help producers and buyers of commodities manage their price risk oveFutures contracts, or simply «futures,» were created to help producers and buyers of commodities manage their price risk ovefutures,» were created to help producers and buyers of commodities manage their price risk over time.

The commodity long - only (long - short) carry portfolio is each month long the equally weighted 30 % of commodities with the highest annualized ratios of nearest to next - nearest futures contract price (and short the 30 % of commodities with the lowest ratios).

A futures contract is an agreement to buy or sell at a certain date for a predetermined price, so its value generally moves along with spot prices of the commodity or index.

The purchased commodity will usually be obtained at a good price, while the commodity sold will earn a good return on investment that covers the cost of the commodity futures contract.

This process of buying longer - dated futures contracts can sometimes be more expensive than simply buying and holding the underlying commodity because of changes in the spot price of the commodity and the amount of time value in the futures contract — a situation known as «contango.»

In a nutshell, a futures contract is a binding agreement to buy or sell a particular quantity of a commodity at a specific price on a specific date.

THOUGHTS ON THE CONTANGO ISSUE, as it relates to Horizon HNU and the fact that the future contract prices move roughly in sympathy with the spot prices of a commodity, in this case, natural gas.

For example, if particular corn futures contract happens to be trading at $ 3.50, while the current market price of the commodity today is $ 3.10, there is a 40 - cent cost basis.

All broad - based commodity indices are based on commodity futures contracts, not the spot prices of commodities.

A contract which gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or a futures contract at a specific price within a specified period of time.

A short hedge involves selling futures contracts to protect against possible declining prices of commodities.

The seller of the option has the obligation to sell the commodity or futures contract or to buy it from the option buyer at the exercise price if the option is exercised.

The actual price or the bid or ask price of either cash commodities or futures or options contracts at a particular time.

A long hedge involves buying futures contracts to protect against possible increasing prices of commodities.

A standardized contract set by a particular futures exchange that includes the size (1000 barrels, 5000 bushels, 5000 ounces, etc.), the place where delivery can be made, the type and quality of the commodity to be delivered, and the price of the transaction.

(d) Disseminate, or cause to be disseminated, false or misleading information, or a knowingly inaccurate report, that affects or tends to affect the price of any commodity that is the subject of a commodity futures contract;

While it's possible to invest directly in commodities (say, by buying 10,000 pounds of sugar), most commodities are traded through «futures contracts» — a promise to buy or sell a certain amount of the commodity at a specified price on a certain date.

Upon expiration, buyers of futures contracts are obligated to buy the underlying commodity from the seller of the contract, independent of the price of the commodity.

With a futures contract, you agree to buy or sell a certain amount of a commodity in the future, with an established price that can fluctuate with market conditions.

Calculate the notional value of a futures contract by multiplying the size of the contract by the price per unit of the commodity represented by the spot price.

Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses.

Futures contracts offer investors a way to get exposure to changing prices of commodities without having to take physical possession.