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Author Topic: Problem of understanding futures contract  (Read 92 times)
Sun2k (OP)
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October 01, 2020, 09:34:55 AM
 #1

Hi all,  Smiley

Here is the definition of the futures contract:
A futures contract is an agreement to buy or sell a product, currency or other instrument at a predetermined price on a selected future date.

In order to understand can you give me an example for "long and "short" ?

Thank you
Flangler
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October 01, 2020, 10:16:02 AM
 #2

In futures trading, the Long refers to the PERSON in a futures transaction that is committed to buying the underlying asset from the person known as the Short. So Long and Short in futures trading refers to the parties rather than a transaction type or order type.

LONG

When you are the Long in a futures transaction on a physically delivered futures contract, you are entering into an agreement to buy the underlying asset from the short at the price agreed upon.

Short

When you are the Short in a futures transaction on a physically delivered futures contract, you are obliged to sell the underlying asset to the Long at the price agreed upon when the futures contract expires. If you do not have the underlying asset in stock, you will be obliged to buy them from the spot market for sale to the Long.

So I'm THE LONG Grin

It is more like an agremments rather transactions.

Source: http://www.futurestradingpedia.com/long_short.htm

EdenHazard
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October 01, 2020, 10:40:29 AM
 #3

Honestly mate, this is not something that we can discuss intensively here.
It's general matter, you need to be more specific and then we can talk & discuss something bout this futures contract sruff.
You need to learn by yourself no matter in autodidact way or through a course. There's a lot of helpful article, podcast or a youtube video explaining this , i can't recommend one but it's worth to give a shot to binance academy just follow the link below

https://academy.binance.com/en/glossary/futures-contract

GL.

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Sun2k (OP)
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October 01, 2020, 11:09:23 AM
 #4

Thank you Flangler, honestly I've read several articles that talk about term contracts but it's still unclear.

I discover the futures contracts so I have difficulty to understand because in all the articles that I read there is no example...

If a person can give me an example in practice it would be great.
(for example, I am the buyer and you are the seller).
Sun2k (OP)
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October 02, 2020, 08:29:00 AM
 #5

Hi, is there anyone who can answer me ..?  Smiley
Bitcoin_bullish
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October 13, 2020, 11:19:14 PM
 #6

Hi, is there anyone who can answer me ..?  Smiley


In this link from CME, you can take a course on futures and understand how it works. Now, if you only want to trade futures on Binance then the friend above has given you a link with what you need.
When you decide to trade you have to be sure that you have read and understood the rules of the exchange you have chosen because mistakes can cost you a lot.

If you want to see how trading futures in Binance is, as an example, there are many videos in youtube. There are some full tutorials available with real trades too.
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