Gold Bulls In Control

Gold Bulls In Control After Brexit (GLD, PHYS) Gold surged after the Brexit referendum, posting a 2-year high, and could gain considerable ground in coming months. Meanwhile, gold funds are still struggling to clear the tops of rising channels put into place in February when momentum eased after the first round of the recovery rally. These stubborn resistance levels should give way to healthy trend advances, as early as this week. There are many ways to play the gold rally but traders often head straight to the worst choice: Vaneck Vectors Gold Miners ETF (GDX).…

Futures Market’s Basic Structure

The Basic Structure of the Futures Market In this opening section, we will take a look at how the futures market works, how it differs from other markets and how the use of leverage impacts your investing. How Futures Work You are probably familiar with the concept of financial derivatives. A derivative is simply any financial instrument that “derives” its value from the price movement of another instrument. In other words, the price of the derivative is not a function of any inherent value, but rather of changes in the…

How Futures Market Works

How does the Futures market works? The futures market is a centralized marketplace for buyers and sellers from around the world who meet and enter into futures contracts. Pricing can be based on an open cry system, or bids and offers can be matched electronically. The futures contract will state the price that will be paid and the date of delivery. But don’t worry, as we mentioned earlier, almost all futures contracts end without the actual physical delivery of the commodity. What Exactly Is a Futures Contract? Let’s say, for…