Agreement On Future Contracts
Clearing margin are financial guarantees to ensure that companies or companies comply with open futures and their customers` options contracts. Clearing margins differ from the margins of customers that individual buyers and sellers of futures and options must pay to brokers. However, futures also offer opportunities for speculation, as a trader who predicts that the price of an asset will move in a certain direction may in the future be reduced to a price that will generate a profit (if the forecast is correct). In particular, if the speculator is able to profit, the underlying product that the speculator traded would have been saved in a time of surplus and sold in a period of difficulty that offers the consumers of the commodity a more favourable distribution of the product over time.  A futures contract is a legal agreement between two parties to trade an asset at a pre-defined price at some point in the future. Futures contracts are traded on equity markets and can be used to influence a large number of assets such as commodities or indices. They are commonly referred to as “future.” The expectation-based relationship will also consist of a non-arbitration configuration if we take expectations about the risk-neutral probability. In other words, a futures price is a martingale in terms of risk-neutral probability. With this price rule, a speculator is expected to break, even if the futures market fairly evaluates the deliverable product. Arbitration arguments (“rational pricing”) apply when the deliverable asset is present in an abundant offer or can be created freely.
In this case, the futures price represents the expected future value of the underlying discount rate at the risk-free interest rate – because any deviation from the theoretical price offers investors a chance to win risk-free and should be whipped. We define the futures price as K strikers so that the contract currently has a value of 0. Assuming interest rates are constant, the futures price is equal to the futures price of the futures contract with the same strike and duration.