A futures contract is a derivative; its value is based on an underlying security. In a futures contract, two parties essentially agree to buy and sell a particular asset, for a fixed price that is predetermined, at a specific date in the future. The delivery and payment of the asset is done on the predetermined future date.
A futures contract can include underlying assets that could be commodities, stock, currencies, interest rates and bonds. A recognised stock exchange acts as a mediator between the two parties.Futures are usually used to hedge against risk or speculate the prices.
Orient offers you the next generation futures trading platform in UAE.Some major securities used in futures contracts are oil, gold, wheat, currencies such as the AUD/USD or EUR/USD, share indices such as the ASX SPITM 200, S&P 500, Nikkei or FTSE Index)
Advantages of Futures Contract
- High Liquidity
- Leveraged Trading With Futures
- Higher Profit Potential
- Lesser Commission Charges
- Futures Markets Are Fairer