Futures Game 2018

[Recaredo Latreche]

Thebuyer of a futures contract must take possession of the underlying stocks or shares at the time of expiration and not before. Buyers of futures contracts may sell their positions before expiration. There is a difference between options and futures. American-style options give the holder the right, but not the obligation, to buy or sell the underlying asset any time before the expiration date of the contract.

When settling a futures contract, the method depends on the asset. Physical delivery is standard for commodities like oil, gold, or wheat. However, for futures contracts based on stocks and stock indexes, the settlement method is cash.

The futures markets are regulated by the Commodity Futures Trading Commission (CFTC). The CFTC is a federal agency created by Congress in 1974 to ensure the integrity of futures market prices, including preventing abusive trading practices, fraud, and regulating brokerage firms engaged in futures trading.

Trading futures instead of stocks provides the advantage of high leverage, allowing investors to control assets with a small amount of capital. This entails higher risks. Additionally, futures markets are almost always open, offering flexibility to trade outside traditional market hours and respond quickly to global events.

The profitability of futures versus options depends largely on the investor's strategy and risk tolerance. Futures tend to provide higher leverage and can be more profitable when predictions are correct, but they also carry higher risks. Options offer the safety of a nonbinding contract, limiting potential losses.

When equities are the underlying asset, traders who hold futures contracts until expiration settle their positions in cash. The trader will pay or receive a cash settlement depending on whether the underlying asset increased or decreased during the investment holding period. In some cases, however, futures contracts require physical delivery. In this scenario, the investor holding the contract until expiration would take delivery of the underlying asset.

Jack D. Schwager and Mark Etzkorn. "A Complete Guide to the Futures Market: Technical Analysis, Trading Systems, Fundamental Analysis, Options, Spreads, and Trading Principles." John Wiley & Sons, 2019. Chapter 1.

The asynchronous execution can be performed with threads, usingThreadPoolExecutor, or separate processes, usingProcessPoolExecutor. Both implement the same interface, which isdefined by the abstract Executor class.

When using ProcessPoolExecutor, this method chops iterablesinto a number of chunks which it submits to the pool as separatetasks. The (approximate) size of these chunks can be specified bysetting chunksize to a positive integer. For very long iterables,using a large value for chunksize can significantly improveperformance compared to the default size of 1. WithThreadPoolExecutor, chunksize has no effect.

Signal the executor that it should free any resources that it is usingwhen the currently pending futures are done executing. Calls toExecutor.submit() and Executor.map() made after shutdown willraise RuntimeError.

If wait is True then this method will not return until all thepending futures are done executing and the resources associated with theexecutor have been freed. If wait is False then this method willreturn immediately and the resources associated with the executor will befreed when all pending futures are done executing. Regardless of thevalue of wait, the entire Python program will not exit until allpending futures are done executing.

All threads enqueued to ThreadPoolExecutor will be joined before theinterpreter can exit. Note that the exit handler which does this isexecuted before any exit handlers added using atexit. This meansexceptions in the main thread must be caught and handled in order tosignal threads to exit gracefully. For this reason, it is recommendedthat ThreadPoolExecutor not be used for long-running tasks.

initializer is an optional callable that is called at the start ofeach worker thread; initargs is a tuple of arguments passed to theinitializer. Should initializer raise an exception, all currentlypending jobs will raise a BrokenThreadPool,as well as any attempt to submit more jobs to the pool.

Changed in version 3.5: If max_workers is None ornot given, it will default to the number of processors on the machine,multiplied by 5, assuming that ThreadPoolExecutor is oftenused to overlap I/O instead of CPU work and the number of workersshould be higher than the number of workersfor ProcessPoolExecutor.

Changed in version 3.8: Default value of max_workers is changed to min(32, os.cpu_count() + 4).This default value preserves at least 5 workers for I/O bound tasks.It utilizes at most 32 CPU cores for CPU bound tasks which release the GIL.And it avoids using very large resources implicitly on many-core machines.

The ProcessPoolExecutor class is an Executor subclass thatuses a pool of processes to execute calls asynchronously.ProcessPoolExecutor uses the multiprocessing module, whichallows it to side-step the Global Interpreter Lock but also means thatonly picklable objects can be executed and returned.

An Executor subclass that executes calls asynchronously using a poolof at most max_workers processes. If max_workers is None or notgiven, it will default to the number of processors on the machine.If max_workers is less than or equal to 0, then a ValueErrorwill be raised.On Windows, max_workers must be less than or equal to 61. If it is notthen ValueError will be raised. If max_workers is None, thenthe default chosen will be at most 61, even if more processors areavailable.mp_context can be a multiprocessing context or None. It will beused to launch the workers. If mp_context is None or not given, thedefault multiprocessing context is used.See Contexts and start methods.

initializer is an optional callable that is called at the start ofeach worker process; initargs is a tuple of arguments passed to theinitializer. Should initializer raise an exception, all currentlypending jobs will raise a BrokenProcessPool,as well as any attempt to submit more jobs to the pool.

Changed in version 3.3: When one of the worker processes terminates abruptly, aBrokenProcessPool error is now raised.Previously, behaviourwas undefined but operations on the executor or its futures would oftenfreeze or deadlock.

The default multiprocessing start method(see Contexts and start methods) will change away fromfork in Python 3.14. Code that requires fork be used for theirProcessPoolExecutor should explicitly specify that bypassing a mp_context=multiprocessing.get_context("fork")parameter.

Changed in version 3.12: On POSIX systems, if your application has multiple threads and themultiprocessing context uses the "fork" start method:The os.fork() function called internally to spawn workers may raise aDeprecationWarning. Pass a mp_context configured to use adifferent start method. See the os.fork() documentation forfurther explanation.

Attempt to cancel the call. If the call is currently being executed orfinished running and cannot be cancelled then the method will returnFalse, otherwise the call will be cancelled and the method willreturn True.

Added callables are called in the order that they were added and arealways called in a thread belonging to the process that added them. Ifthe callable raises an Exception subclass, it will be logged andignored. If the callable raises a BaseException subclass, thebehavior is undefined.

If the method returns False then the Future was cancelled,i.e. Future.cancel() was called and returned True. Any threadswaiting on the Future completing (i.e. throughas_completed() or wait()) will be woken up.

Wait for the Future instances (possibly created by differentExecutor instances) given by fs to complete. Duplicate futuresgiven to fs are removed and will be returned only once. Returns a named2-tuple of sets. The first set, named done, contains the futures thatcompleted (finished or cancelled futures) before the wait completed. Thesecond set, named not_done, contains the futures that did not complete(pending or running futures).

Derived from BrokenExecutor (formerlyRuntimeError), this exception class is raised when one of theworkers of a ProcessPoolExecutorhas terminated in a non-cleanfashion (for example, if it was killed from the outside).

Designated by the CFTC as a registered futures association, NFA strives every day to safeguard the integrity of the derivatives markets, protect investors and ensure Members meet their regulatory responsibilities.

BASIC is a free tool that Members and investors can use to research the background of derivatives industry professionals. Whether you are an investor thinking about opening a futures account or an NFA Member contemplating a new business relationship, BASIC can be a valuable resource.

NFA has the authority to take disciplinary actions against any Member or Associate that violates its rules. If an NFA Member or Associate engages in conduct that puts customers, the futures markets, or other Members at risk, immediate action will be taken accordingly.

Track forward-looking risk expectations on WTI Crude Oil with the CME Group Volatility Index (CVOLTM), a robust measure of 30-day implied volatility derived from deeply liquid options on WTI Crude Oil futures.

Use WTI Crude Oil futures to hedge against adverse oil price moves or speculate on whether WTI oil prices will rise or fall. Our diverse WTI futures and options suite provides more flexibility to trade oil with WTI Crude Oil price discovery. View delayed WTI Oil prices and WTI Oil price charts below.

In finance, a futures contract (sometimes called 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 or delivery 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.

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