Conclusion A futures contract is a contract between two market participants to buy or sell a financial asset in the future at a pre-agreed price. Often, transactions on them are closed before the expiration date of the contract without a real delivery. Futures trading is considered more risky and speculative due to its complexity and lower margin requirement compared to stock trading. There is an opinion that futures are a tool for active short-term traders rather than long-term investors. Due to the increased risks when trading these contracts, you should carefully follow the rules of risk management and manage your trades wisely.
Какие бывают фьючерсы?-What are futures?
Get link
Facebook
X
Pinterest
Email
Other Apps
There are several types of futures contracts in different markets. The speculator is advised to choose one or two contracts and specialize only in them in order to gain a deeper understanding of the market in order to make the right trading decisions. Consider the most common futures:
Precious metals. Traders buy and sell Gold and Silver futures. As a rule, investors, when working with these contracts, seek to hedge against high inflation or general financial uncertainty in the world.
Stock indices. These contracts depend on the movements of stock indexes such as Nasdaq or Dow Jones. On these movements, traders who have chosen futures for stock indices are trying to make money.
Currency futures. These are contracts to buy or sell a certain amount of a currency at a pre-agreed price expressed in another currency in the future.
Energy. These futures contracts include oil and natural gas and serve as a benchmark for world oil prices.
Agriculture. Here, trading is carried out in contracts for soybeans, corn and wheat. Weather conditions and seasonality can have a strong influence on them.
Treasury bonds and interest rates. Such futures contracts play the most important role in international financial markets, and the traders who work with them closely follow the actions of the US Federal Reserve.
Livestock. In this category, participants have the opportunity to speculate on the prices of livestock and pork. These prices are strongly influenced by supply and demand.