Key Takeaways VIX futures prices can help traders make sense of VIX option prices The VIX futures term structure, and whether it’s in contango or backwardation, can affect VIX option prices Learn how to use the VIX Volatility Index (VVIX) to help you choose among option strategies When the Cboe Volatility Index (“VIX”) was launched […]

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Key Takeaways Options on futures share many characteristics with equity options, with a few key differences  When trading options on futures, know the contract size, delivery specifications, and skew Theoretical prices and risk assessments of options on futures are calculated in the same manner as equity options   If you’ve read any options-related content on The […]

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Key Takeaways Before considering trading bond futures, understand how interest rates, volatility, and credit ratings affect bond prices  TD Ameritrade clients with futures account privileges may trade bond futures and options on the thinkorswim® platform For some people, the thought of trading bonds evokes images of Mortimer and Randolph sipping brandy in smoking jackets, or maybe retirees […]

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A futures contract is a legally binding agreement to buy or sell a standardized asset at a predetermined price at a specified time in the future. Typically, futures contracts are traded electronically on exchanges such as CME Group, which is the largest futures exchange in the U.S. Many futures contracts—such as those based on crude […]

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Key Takeaways Learn how futures can expand leverage and perhaps offer greater capital efficiency Consider futures as a way to try to reduce portfolio risk by adding exposure to traditionally non-correlated asset classes  Learn how to construct a beta-weighted portfolio hedge using index futures You finally gave up the mini van, and you’re cruising along Tuscany’s […]

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Key Takeaways New “Micro” E-mini equity futures see strong volume in first few weeks Smaller contracts might be more accessible to beginner futures traders Product could offer investors a way to diversify into futures TD Ameritrade is offering clients a new way to trade Bitcoin futures In the quest for a “home run” investing or […]

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Key Takeaways Many active traders use futures contracts based on the S&P 500 and other benchmarks to hedge against market downswings Benefits of futures include the ability to control a large position with a relatively small amount of capital Futures hedging strategies often involve beta weighting a portfolio to gauge sensitivity to broader market moves […]

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