The "cost of tender" is the amount of money that a futures exchange charges to allow a trader to enter or exit a position. This fee is typically a small percentage of the total value of the contract being traded. What are tender fees? Tender fees are the fees charged by a commodities exchange for the service of providing a market for the trading of futures and options contracts. These fees are typically charged on a per-contract basis, and they vary depending on the type of contract being traded. For example, the tender fee for a standard futures contract might be $0.50, while the tender fee for an options contract might be $0.25.
Can you hold futures forever? No, you cannot hold futures contracts forever. All futures contracts have an expiration date, and at expiration, the contract is settled. The settlement price is typically the price of the underlying asset on the expiration date, but sometimes it is the average price of the asset during the contract period.
What are the types of futures?
There are four types of futures contracts:
1) Commodity futures: These are futures contracts for physical commodities, such as grains, metals, and energy products.
2) Financial futures: These are futures contracts for financial instruments, such as interest rates, foreign exchange, and stock indexes.
3) Weather futures: These are futures contracts for weather-related variables, such as temperature, precipitation, and wind speed.
4) Real estate futures: These are futures contracts for physical real estate, such as office space, retail space, and residential property. What is an example of a futures contract? A futures contract is a type of derivative instrument, or financial contract, in which two parties agree to transact a set of financial instruments or physical commodities for future delivery at a particular price. Futures contracts are standardized by a futures exchange in terms of quantity, quality, time and place of delivery.
The most common types of futures contracts are those for commodities, such as agricultural products, precious metals, and energy products. However, futures contracts can also be used for financial instruments, such as interest rates, foreign exchange, and stock indices.
Futures contracts are traded on a futures exchange, such as the Chicago Mercantile Exchange (CME), or the Intercontinental Exchange (ICE). In order to trade a futures contract, a trader must first open a margin account with a broker that offers futures trading.
The price of a futures contract is not fixed, but rather is set by the market. The price is determined by supply and demand for the underlying asset. For example, if the demand for crude oil is high, then the price of a crude oil futures contract will be high.
When the contract expires, the buyer and seller must either pay the difference between the futures price and the spot price, or they can choose to roll over the contract to the next delivery month.
Futures contracts are often used by investors as a way to hedge against risk. For example, if an investor owns a stock, they can purchase a put option on that stock as a way to protect themselves against a decline in the stock price.
What are the three types of tenders?
There are three types of tenders:
1. Financial Tenders
2. Technical Tenders
3. Commercial Tenders
1. Financial Tenders
Financial tenders are usually used for projects that require a large amount of money. They are usually used for projects that are of a high value, or for projects that are complex in nature.
2. Technical Tenders
Technical tenders are usually used for projects that require a high level of technical expertise. They are usually used for projects that are of a high value, or for projects that are complex in nature.
3. Commercial Tenders
Commercial tenders are usually used for projects that are of a lower value. They are usually used for projects that are less complex in nature.