A futures contract is a variety of type or financial contract in which two parties agree to create a certain transaction on a specified future date at a specified current price. Trading futures contracts are also known as border trading.
Border trading provides a leverage of capital as just a border needed, usually 5 to 10% of the total value of the contract to trade.
Futures have been gathering popularity throughout the recent years as investors and traders are trying to find alternatives for better return of investments and with that popularity, arises different types of futures contract.
Futures contract are classified into two big categories -financial futures and items futures.
Types of Financial Futures
Eurodollar futures are You. S. dollars that are placed beyond the country in commercial banks mainly in Europe which are known to settle international transactions. They are not guaranteed by 메이저사이트 any government but only by the obligation of the bank that is holding them.
You. S. Treasury Futures
Because You. S. Dollars is the earmarked currency for most countries, the stability of the dollars allows for treasury futures market and instruments such as treasury bonds and treasury bills.
Foreign Government Debt Futures
Most government issue debt that are corresponded to the futures markets that are listed around the world.
This is generally agreements that are between two parties to switch routine interest payments.
This type of futures is to manage the risks and take advantage of related forex exchange rate movement.
Single Stock Futures
Most popular futures contracts are related to the fairness markets, they are also known as security futures. There are about 10 companies in Malaysia that provides single stock futures. They are Bursa Malaysia Bhd, Air Asia Bhd, AMMB Holdings Bhd, Berjaya Sports Toto Bhd, Genting Bhd, IOI Corporation Bhd, Maxis Communications Bhd, RHB Capital Bhd, Scomi Group Bhd and Telekom Malaysia Bhd.
Futures that use the stock listing. In the case of the Kuala Lumpur Grp composite Listing, the listing futures will be the FTSE Bursa Malaysia KLCI Futures (FKLI).
Types of Items Futures
Major metals traded in with futures contracts include water piping, gold, american platinum eagle, palladium and silver, which are listed on the New york Mercantile Exchange which has combined with the Chi town Mercantile Exchange.
The most popular energy futures contracts are primitive oil, primitive side oil, heating oil and gas. They have become an important indicator of world economic and political developments and are very much influenced by producing nations such as Malaysia.
Grains & Oil Seed
Grains such as soybeans and oil seed are very important to food and feed supplies, and prices are sensitive to the conditions, and also to economic conditions that affect demand. Because hammer toe is integral to the increasing popularity of ethanol fuel, the hemp markets also are affected by the vitality markets and the demand for fuel.
Item futures on live livestock, feeder livestock, lean hogs and chicken bellies are items traded in at CME Group Inc and prices are affected by consumer demand, competing protein sources, price of feed, and factors that influence the number of animals born and delivered to market, such as disease and weather.
Food and Fiber
The food and fiber category for futures trading includes hot chocolate, coffee, cotton and sugar. In addition to consumer demand globally, factors such as disease, insect’s infestation and drought affect prices of these items.