Chapter 12. Stock Futures and Options Strategies (Bonus Chapter)
It seems as if we’re constantly entering into new eras of trading and investing with all the changes and innovations that are occurring as a result of the increasing pace of technology. One of the latest financial innovations, undertaken separately by LIFFE and the CBOE with the CME, has been the creation of “stock futures” whereby you can take a long position in a stock without actually having to put your cash into it. This is not the same as equity margin because the stock future itself is the instrument that you trade, not the stock itself.
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Buying a (stock) future is similar to agreeing to buy shares at a future date but agreeing on the price at the time of the trade. |
Obviously, ...
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