Trading Financial Futures: Markets, Methods, Strategies, & Tactics

Describes terms and conditions associated with futures contracts, discusses technical analysis, cost of carry, securities, Treasury futures, and spread relationship, and shows how to use financial futures for hedging

The term ``commodity'' has been extended to include such markets as fixed income, foreign exchange, and stock market instruments. These financial commodity markets now account for the bulk of industry volume, and options exercisable for a variety of futures contracts have accounted for considerable industry growth. This book explains how to successfully enter the financial futures and option markets, and provides the reader with firm theoretical and practical grounding in how they work and how to use them. Financial futures and options can enhance investment yields and are useful for hedging risk exposures. Chapters cover fundamental market factors, technical analysis with futures, cost of carry, discount and interest-bearing securities, playing the Treasury futures basis, financial futures spread relationships, hedging with financial futures, and asset/liability management with futures.