Futures are derivatives and the flagship product for trading by its own characteristics that differ greatly against the actions.
Futuo contract is an agreement that obliges the parties involved to buy or sell at a certain date, depending on the position taken.
The futures trading can take positions either upward or downward, called long and short respectively in shares is only possible to enter the market with long positions, waiting for the market to rise, therefore the considerable increase in negotiations and traders or more active investors, to incorporate new investment strategies or speculative trading.
Future in the beginning were created to cover positions in existing bag, possible declines in prices and thus remain stable, but evolved to become part of speculation without hedged positions allowing gain from declines in prices, are forward commitments as the name suggests.
The first signs of use back to agricultural Egyptians, who not knowing what the future might bring them crop, agreed with the buyer a price for independent total of what collected.
The commissions in the future are much smaller for the same amount, compared to a stock in the future such as the ibex with a price of 10,000 that the value is 10 euros per point, it is buying 100,000 euros, with a commission around 10 euros, otherwise, if EUR 100,000 shares were purchased at an average environment commission of 0.20% we’d go to 200 euros, the difference is clearly commission for the same amount of capital.
Another distinguishing feature of the future is called leverage, future minimum guarantee is determined by the broker or the securities company with which operates prowling around 10% of the price exists, and above will be capital investment intended to determine the leverage we used this means to the above mentioned quote if 100,000 euros would get involved and future leverage buy not exist, and as the capital falls gives us using the resulting leverage.
For this reason there is to know the risk profile of each investor and not be blinded by the potential gains, so the products as complex and must have prior knowledge before operating with them cataloged, because a movement against an excess leverage can lead to insufficient balance and have ruined the proposed strategy. It is the result that each point that the independent future of capital to move always used this above guarantees broker, the point value of the underlying example of the future of the ibex 10 euros, dax moving from 0 was won 5 is 12.50 euros etc …
Future Another feature is that expire can be monthly or quarterly, that day the contract is settled and you have to buy the next future with their new respective maturity.
IBEX, AEX, CAC 40, pretoleo are monthly maturities.
DAX, BUND, S & P, RUSSELL, NASDAQ, not quarterly.