Futures dealing is a agreement determined for
shipping of a certain investment later on at a set cost. A futures agreement
customer represents liability to buy a investment within a particular period of
time. A futures agreement owner requires liability to sell the investment
within the specified deadlines. Both responsibilities are related to a
conventional variety of a certain investment, they will be applied at some
point later on at a cost set during the business performance. That is to say, this
function must be applied until plenty of period set in advance - it is
specified in the futures agreement requirements. The most endemic merchandise
are those often used in everyday routine.
Here they are:
• Gas
• Oil
• Gasoline
• Gold
• Corn
• Currency
• Steel
• Cotton
• Wood
The futures industry is more fluid than the
investment one where futures are exchanged. Futures dealing for these
merchandise are exchanged by a large number of investors everyday. All them are
trying to generate revenue wondering on futures - buying merchandise less
expensive and promoting at a high cost. The futures dealing occurs on the
futures foreign exchange, the most popular investment and futures inventory
marketplaces are:
• NYMEX (New You are able to Merchantile Exchange)
• CBOT (Chicago
• CME (Chicago
• IPE (International Oil Exchange)
• LIFFE (London Worldwide Financial Futures dealing
Exchange)
• LME (London
The procedure of futures dealing is just like the
procedure of dealing on Forex trading. On the futures marketplaces there are
identical concepts of specialized and essential research, the same signs or
symptoms and index charts and also the way of establishing purchases. Moreover,
first of all, all this system was exercised special for the futures dealing, as
it surfaced much previously than Foreign exchange industry. But worth seeing
that futures dealing has several significant distinctions:
- A currency couple on Forex trading can be started
out permanently, i.e. once having purchased weight for dollars you can hold
this place for a while - for several weeks or even years. But it is different
with futures. A futures agreement has an termination period. If you do not near
place by yourself it will be shut unconscious at a ending cost of the day and
hour of futures agreement maturation. You have to follow the credibility period
of a futures agreement and change to a later agreement promptly.
- The futures value includes several parts. The first
signs in the status point to a investment type (gold, oil, natural organic
cotton etc.), the next signs show the month and season of futures shipping. For
example, NGQ0 indicates gas futures (NG - Natural Gas), Q - Aug, 0 - 2010
season.
Here are the designations of several weeks when
futures are traded:
• Jan - F
• Feb - G
• Apr - H
• Apr - J
• May - K
• May - M
• September - N
• Aug - Q
• Sept - U
• Oct - V
• Nov - X
• Dec - Z
- The closest termination period of a futures
agreement is the most fluid. That indicates that the cost for this resource is
maximally near to the real one and there is a small chance of distinct cost
increase.
- As it is known, Forex trading is a non-exchange
industry, the quotations are offered by a big number of lenders and investors.
So you can business at costs considerably different from costs of other
brokers/dealers. It is difficult with futures.
- The futures dealing is run only in the inventory
marketplaces and only a certain customer or owner decides the rates. Each
quotation has its cost and amount - it has a certain customer and owner. The
inventory marketplaces publish quotations on their sites for the past dealing
period (trading day) perfectly to each mark.
- The size of futures agreements is stringently
consistent by the foreign exchange which places the amount and quality of a
investment specified in it. For example, 1 futures agreement for pig bulks (PB)
states a shipping of 40000 weight of certain scaled pig bulks; Silver upcoming
(GC) states a 100 ounces shipping of gold not less than 995 countermark; raw.
