Related Topics

  • Unveiling the Mysteriousness of NOB Spreads - A common way to hedge your risk against your fixed income portfolio is to use the Treasury bond over the Treasury note spread. This is commonly known in the futures industry as the NOB spread.
  • Want to really dive into using spread trading? Request your copy of our Introduction to Spread Trading guide.

Stocks to Futures

Watch this RJOF Quick Tips: Stocks to Futures video presented by our Senior Market Strategist, Phillip Streible to learn how trading stocks differs from trading futures and how to implement them in your futures trading plan




What is a future?

A future is a contract of a specific commodity that is bought or sold at a future date. It has standardized quantity, quality and delivery. Buyers can agree to either buy or sell at a future date but do not take or make delivery today.


Why trade futures?

Leverage is the ability to control large dollar amounts of a commodity with a comparatively small amount of capital. Traders who purchase a futures contract are attempting to gain bullish exposure. On the other hand, traders who sell a futures contract are attempting to gain bearish exposure.


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This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.