I have read about index futures contracts and as I know there are diferent strike, expiration dates and new contracts can be created. So when future prices are down does it mean more people are selling those contracts? if more prople are selling. Does it mean all future contracts ? (with different strikes)
In: 1
The futures you are referring to are the nearest expiration, strike and their pricing. Yes, all futures contracts generally move the same direction as the market. Sometimes, small differences can be made with extraordinary buying or selling, but that usually gets corrected very quickly.
Futures have expirations but not strike prices. You may be confusing them with options a little bit there. When futures are down it means that there is a lot of selling pressure just like regular spot prices or other derivatives. Futures are just an agreement (legally binding) to buy and sell a commodity or asset at a future date (the expiration). Their price can be influenced by supply and demand, market sentiment ect.
Latest Answers