Public Standardised Transactions

    A standardized futures contract has a specific:

    1. Underlying Instrument: The commodity, currency, financial instrument, or index upon which the contract is based;

    2. Size: The amount of the underlying item covered by the contract;

    3. Delivery Cycle: The specified months for which contracts can be traded;

    4. Expiration Date: The date by which a particular futures trading month ceases to exist and, therefore, all obligations under it terminate;

    5. Grade or Quality Specification and Delivery Location: A detailed description of the” par” commodity, security, or other items that are being traded and, as permitted by the contract, a specification of items of higher or lower quality or of alternate delivery locations available at a premium or discount; and

    6. Settlement Mechanism: The terms of the physical delivery of the underlying item of a terminal cash payment.

    The only nonstandard item of a futures contract is the price of an underlying unity, which is determined in the trading arena.

    Disclaimer: While we make every effort to update the information, products, and services on our website and related platforms/websites, inadvertent inaccuracies, typographical errors, or delays in updating the information may occur. The material provided on this site and associated web pages is for reference and general information purposes only. In case of any inconsistencies between the information provided on this site and the respective product/service document, the details mentioned in the product/service document shall prevail. Subscribers and users are advised to seek professional advice before acting on the information contained herein. It is recommended that users make an informed decision regarding any product or service after reviewing the relevant product/service document and applicable terms and conditions. If any inconsistencies are observed, please reach out to us.

    Latest Articles

    Related Stories

    Leave A Reply

    Please enter your comment!
    Please enter your name here

    Join our newsletter and stay updated!