Futures Trading
Futures are derivative financial contracts that require both
the buyer and the seller to trade an asset at a predetermined
future date and price irrespective of the current market price
at the expiration date. Futures contracts present the
quantity of the underlying asset and facilitate trading on a
futures exchange in a standard way. Futures can be used for
both hedging or speculation.
Get into CFDs and trade futures with a trusted broker
Why trade futures?
Futures allow traders to lock in a price of an asset or commodity. These
contracts have expirations dates and predetermined prices. One can identify
them by their expiration month. The term futures is an overall market
representation. However, there are more futures contracts available for trading
such as: Commodity futures like in crude oil, corn, wheat or natural gas,
currency futures including those for the euro and the British pound, stock
index futures like the S&P 500 Index, U.S. Treasury futures for bonds and other
related products and precious metal futures for gold and silver. Trade futures
and get the most out of trading with fast execution and no requotes, by
opening one out of the multiple trading accounts Currenso Technologies Limited offers.
Why People Love To Trade futures?
In the futures markets typically high
leverage is used, meaning that the
contract’s value amount does not
need to be used to its maximum.
Instead, the broker will require a small
fraction of the total contract value,
that is, an initial margin amount.
Futures contracts allow traders to
speculate on the direction to which a
commodity’s price will move. If
traders buy a futures contract and the
commodity’s price rises, and also
trade above the initial contract price
at expiration, then the trade will most
probably be successful
Futures can be also used for hedging
the price direction of an underlying
asset. The goal in this case is not to
speculate but rather to prevent or
reduce losses that may be caused
from potential price changes.
Low barriers to entering the global
base of futures ensure the deepest
liquidity and efficient execution. Also,
trading CFDs on futures is highly
popular among both newbie and
professional traders looking for a
flexible and diversified portfolio.