Friday, November 1, 2013

Factsheet on future

What are the future ?

Futures, also called futures contracts, used to buy or sell an underlying asset at a given price . There may be various assets : currencies, commodities , interest rates , metals, indices such as the Nasdaq or the CAC40 .

Today, all the world's financial centers offer this type of financial product.

Future represent more than 40 % of the total volume of financial markets.
It is from the 70s that future have achieved significant success in integrating indices.

How future work?


Future are not accessible via all online brokers .
Once your chosen broker , you must make a deposit which actually depends on the chosen contract . Thus, in terms of the CAC40 , the amount depends on the experience of investors, while for the U.S. indices such as the S & P500 , it evolves according to the level of the index. Finally, a commission is paid on the purchase and sale contract .

A flat fee may also exist . It must then be sure to check in advance with your broker .

Who are the future priority ?

Future require good financial knowledge and experience in the field of online trading , particularly in terms of money management .
Therefore, investing in the future is not recommended for beginners who expect to enjoy the leverage to have very high annual returns .

What are the main advantages of the future ?


Future have three main benefits for individual investors :


    
Futures can be traded on a wide and varied range of underlying , namely metals , oil and other commodities , rates and indices


    
It is not necessary to open a special account for day trading of at least $ 25,000 if you invest in the U.S. markets


    
The high degree of leverage can be a double edged sword . It can lead to gains of several hundred percent per year , but a corollary , loss equally important.

Recommendations :

Investing in the future may be an interesting strategy diversifcation a financial portfolio , provided you have the required knowledge.
Forex.fr recommends several online brokers to
place your money on this financial product :


    
Saxo Bank, controlled by France , which offers more than 450 futures contracts . Learn more about Saxo Bank ...


    
ACM regulated in Switzerland, which offers futures contracts on major European and U.S. indices. Learn more about ACM ...