Futures - one of the most famous tools on Forex. Futures contracts are necessary to reduce risks at the conclusion of transactions, because the buyer and seller must fulfill the conditions. They allow financial market participants to secure profits and guarantees.
What features have futures?
A futures contract is a security obliging both parties to fulfill the stipulated conditions. The seller must provide the goods, promotions or services on time. The buyer is obliged to buy the asset at a price that is fixed in the agreement.
When working with futures at the stage of concluding a contract, the price and terms are fixed. The quantity, quality and other parameters of the instrument are stipulated in advance.
There are two categories of forex futures:
- Deliveries. When investing money in raw materials or other goods, the delivery must be made on the date specified in the contract.
- Calculated. This category does not imply the delivery of an asset, so the buyer and seller only make cash payments.
Futures contracts have three general purposes, and the categories play no role. Their main task is to determine the price of an asset. There are two application meanings: risk reduction and speculation. The latter option is more common, investors are speculating.
How to use futures contracts?
Futures are highly sought after by speculators, and not only by traders with various assets. This is due to the lack of need for the actual delivery of an asset of one of the varieties of the contract.
There are 2 main parameters:
- Date of execution (expiration date, delivery date) - i.e. the specific date on which the sale transaction must take place.
- Underlying asset - i.e. the subject of the contract, whether it be goods, raw materials, securities, currency, indices.
In the company BFB Capital is available 37 settlement forex futures. According to them, the participants carry out exclusively monetary calculations in the amount of the difference between the actual and the price of the agreement.
As an example, you can take a cotton producer who wants to negotiate a fixed cost for the crop. If during the season there will be an excess supply, then there is a high probability of a significant reduction in price. Using futures, the manufacturer reduces the risks by increasing the likelihood of maintaining a firm value.
BFB Capital - Effective Futures Investment
Exchanges are key elements in working with futures contracts for commodities and other exchange tools. They guarantee the trustworthiness of customers, provide a platform on the Internet that allows you to safely enter into contracts.
A futures contract improves business stability. At the conclusion of the contract for raw materials, both parties make a deposit margin, which is necessary for the security of the transaction. If one of the parties is found guilty of disrupting the agreement, the amount paid in will be compensated for the loss of profits or losses incurred.
There are 4 categories of futures contracts:
- Corn. It includes wheat (WHEAT), corn (CORN), soybean (SOYBEAN).
- Energy. There are a lot of such basic assets, for example, crude oil (OIL and OIL.WTI) and natural gas (NATGAS).
- Soft goods. These tools are coffee (COFFEE), cotton (COTTON) and so on.
- Interest rates in the international capital market. Here you will find 10-year US papers under the ticker TNOTE, 10-year German papers - BUND10Y.
On the xStation5 platform, you can find the assets listed above under the tickers (tickets) that are shown in brackets. In the "Rollovers" are available the expiration dates of contracts for futures. Each agreement has a standardized amount that does not change.
A calculator is available on our platform. Use it to calculate for a number of parameters, for example, the value of the contract. It also contains information on operating sessions, marginal leverage and asset performance indicators.
Spending just 5 minutes of registration, you will receive a personal account with the necessary tools for working with futures. Open access to managing operations from a mobile device, detailed statistics. Get the advantage of the most financial instrument in the Forex market - hedging risks or making money on speculation using Commodities and other financial instruments.