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.
What kind of trading strategy should I use?
Traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumour. The most dramatic price movements however, occur when unexpected events happen. The event can range from the government raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.
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