Futures Are Highly Standardized Financial Contract Or A Derivative Instrument, Which Obligates The Two Parties To Transact A Set Of Financial Instruments, At A Predetermined Future Date And Price.
To reduce the counterparty risks and default risks, all futures positions are marked-to-market daily, participants must maintain a certain margin level.
The Benefits of Futures Trading
Speculation and Hedging
Primarily, investors do not enter into a futures contract to possess or sell the physical goods. Rather, it is a popular investment instrument to speculate on the changing values of securities, or investor may use it as a hedging instrument to reduce potential losses.
Trading Futures with Trade Globals Infotech
Clients can trade futures products with commodities (energy, agricultural good, and metal), indices, and bonds.