Currency Futures
Futures are a financial instrument, a contract designed to minimise the impact of market price fluctuations on business entities. The contract, concluded between the seller and the buyer, fixes the price of a commodity on the day it is signed. The fulfilment of the terms of the transaction is planned for the future.
Such instruments are popular in industries with long production cycles, such as agriculture, mining and the timber industry.
What are futures?
A futures contract is a contract for buying or selling an asset. It defines only the price and the delivery date. Other details: quantity, quality - are defined in advance in the specification of the exchange contract. The parties' obligations to the exchange remain in force until the terms contained in the document are fulfilled.
There are two types of futures:
- Deliverable Futures which involve the purchase of an asset;
- Cash Settled Futures, which involve only cash settlement in the amount of the difference between the actual and contract price of the asset.
Currency futures
Currency futures are contracts for the purchase or sale of currencies, whereby the buyer undertakes to buy and the seller undertakes to sell a certain amount of money at the exchange rate as at the date of signing the document.
The purpose of such contracts is to reduce risks in case of price fluctuations, or to make profit from price changes. Continuous monitoring and careful analysis of changes in the financial market will allow you to make a profit. The exchanges that trade futures are CME, MATIF, SIMEX.
Futures charts
Interactive Futures Charts allow you to monitor real-time changes in contract quotations on the financial market and record the data for a given period. This convenient analytical instrument allows for stock market situation assessment, making forecasts and concluding transactions.
Special programs and online services monitor the representation of graphical data. There are special programs and online services to monitor the chart data. The settings allow you to vary the time scale, change the scale, add indexes and save the results.
Futures trading
Trading in futures allows traders to profit from price fluctuations in futures. For successful trading it is necessary to consider many parameters of the contracts
- Volatility;
- Liquidity;
- Size;
- Volume of contracts in the market;
- Collateral;
- the open interest of the participants.
Before making transactions, it is necessary to open a trading account with a broker, determine its size and risk parameters and developing a transaction plan.
Gold futures
Gold futures is the way to trade the precious metal at world prices. It is a convenient and powerful hedging instrument enabling you to diversify risks and obtain profit from buying and selling transactions. It is also an excellent insurance policy against economic crises and a profitable investment. The constantly high interest in the asset provides ample opportunities for transactions on the stock exchange. The advantage of contract trading, as compared to selling the metal itself, is in the standardization of contracts, easy storage of documents.
Oil futures
Crude oil futures enable oil companies to purchase large amounts of raw materials at a fixed price, hedging themselves against sharp price fluctuations. They are most attractive in times of high price volatility. Such contracts are an excellent means of generating income when buying and selling and getting a margin on price fluctuations. High demand for black gold and frequent price fluctuations make futures an excellent earner.