> Subject: Re: Funbond yields > From: [EMAIL PROTECTED] > > Regarding the nomenclature, I don't think "futures" would make much sense, Jim. > > Firstly, futures apply only to commodites (things, like sugar, wheat > etc), futures have no relevance to equities .. equities being > companies, organizations, people, LLCs, public companies etc.
-- lyris duster -- :-) > You cant buy a "future" of IBM, it's meaningless. Similarly you > can't buy a "bond" of Wheat or from Wheat, it's meaningless. >indeed you dont "buy" futures at all (they dont cost money, you dont > pay anything when you take one) > [. . . a future. . .] is a contract exchanged with another trader. > In contrast a bond is something you buy, for a certain amount of > money, from an entity like IBM or egold. So thats exactly what a "funbond" is. While I haven't traded commodities futures, I have fiddled around with options (which apply to equities) and my uderstanding is that options are essentially the same thing as futures --"a contract giving you the 'option' to buy or sell something at a specified 'future' date". You can actually buy options on futures, which is like buying an option of an option. I hear in some commodities circles that they feel the futures system should be done away with and replaced with the options system that has evolved -- thereby creating a common lingo and more uniform standards. Another thing. While it is possible to set up private futures/options that may not cost anything upfront, it does cost to deal in the publically traded options/futures -- and if you're shrewd, you can make a lot starting with very little (I'm still working on the shrewd part . . . :-) ) PECB --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] http://www.e-gold.com/stats.html lets you observe the e-gold system's activity now!
