In futures trading has its own special nuances that make this market attractive for both beginners and experienced traders. The main difference between futures market is its low volatility and a clear predictability. Unlike other financial markets, providing a fairly high liquidity of its assets, futures contracts are not subject to chaotic movement of prices. This is largely due to the fact that for a large number of market participants, there is a huge variety of trading tools, which can be purchased futures.
Share liquidity is distributed unevenly between them, but the number of groups of products for the contract allows each market participant to make your best choice. The stability of this market is also ensured by the fact that at the conclusion of the transaction there is a pre-negotiated price, and also set the dates on which the contract is to be executed. With regard to the risk here, too, has its advantages.
As the price is fixed, it will automatically exclude the possibility of losing more than agreed in the contract. In addition, futures trading due to the attractiveness of the two financial features of the broker. In - First, the margin trading does not provide explicit commissions or wide spreads. Size commission proportionally removed depending on the quotes at the moment and can be very low. In addition, the management of intraday scalping sizes commissions are less than two or more times that hardly felt in the conduct of successful trading. Secondly, payment of the contract will be charged only to the extent of about 30%, but not completely, as is the case with foreign currency assets. In general, the benefits are obvious.
And thanks to these advantages, more and more traders are transferred from the foreign exchange market to trade in futures. It should be noted that futures imply obligatory fulfillment of the conditions stipulated in the contract, which in itself excludes the possibility of unexpected changes and an increase in risk.
Classification of contracts
As mentioned above, futures contracts have several groups, which significantly extends the capabilities of all market participants. Here are the main group, which is represented by the futures market.
- Currency futures, submitted by seven major currencies and their crosses. Furthermore, in this group there are a number of exotic currencies, the category which, incidentally, applies to the Russian ruble.
- Trade indexes of various exchanges. In this section there are all well-known and popular among traders indices Dow Jones, S & P 500, FTSE, DAX, Nikkei, NASDAQ, as well as some other, less in demand, but at the same time providing an excellent trade.
- Metals, the category which applies to gold, silver, platinum, nickel, and other types of metal involved in international trade and is a means of barter transactions.
- Agricultural market, presented a wide variety of assets. There participate in market speculation crops, such as wheat, barley, rice, corn. And this includes wood, sugar and other commodities, are always in demand.
- Energy resources, which include, in the first place - oil, gas, gasoline, coal. All these goods come through the primary stock exchange NYMEX.
- In addition, there are more securities markets, contracts on interest rates.
Priorities futures markets
Each of these groups has its own peculiarity in contracting, but it should be noted that all the goods represented groups are constantly in demand to compete in markets. Moreover, they regularly increase in demand, as they have a crucial role to the vigorous activity of entire nations. Naturally, the futures contracts to these groups of products will be continually popular, especially as the demand for them grows.
For example, foreign currency assets are popular because they are taken as the main means of payment for the procurement of all types of goods. But in every National Bank has a certain stock exchange. In addition, you may need a completely different currency for settlement. In this case, begin to make exchange operations with the national banks of other countries. For example, you can take the purchase of oil. If set the price per barrel in the British pound sterling, and the buyer is one of the countries of the European region, the calculation must be made to the currency, which is not enough or not at all in the National Bank. Then you have to buy the pound sterling in the world currency market.
A similar situation and with other assets. Food resources are also put up for sale at a specific payment currency. Considering that in many countries there is a shortage of food, the market of agricultural products is updated regularly due to the high rate of sales. With respect to metal - there is even simpler. Metals, which are pledged as collateral of currency, such as gold, silver and platinum, is always a price, because they provide the purchasing power of the national currency, and the welfare of the state as a whole.
Thus, the considered list of products gives a clearer picture of the prospects of futures contracts in the share of international trade, and also shows the feasibility of participation of individual traders in futures trading.