Futures
A futures contract is a form of forward contract, a contract to buy or sell an asset of any kind at a pre-agreed future point in time that has been standardised for a wide range of uses. It is traded on a commodity exchange.
Futures may also differ from forwards in terms of margin and delivery requirements. The price is the only variable and is determined through the interaction of buyers and sellers at the time when the contract is first opened. A Futures Option is a contract between two parties giving the buyer the right, but not the obligation, to buy or sell a parcel of shares at a predetermined price on or before a predetermined date.
Essential information about every futures and options contract is right at your fingertips.
Do I receive interest on my funds?
Interest is paid on all excess funds in your account, this being the amount available after initial margin and variation margins have been excluded. Interest is also earned, or charged, on open currency positions depending on whether a currency has been bought or sold. These latter interest payments are credited to a bought currency (similar to a credit balance in an interest bearing cheque account) and debited to a sold currency (similar to a debit balance in a cheque account). More information is available on this topic at your request.
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