Futures level 1
Agenda • • • •
What are futures? Why do they exist? Who trades futures? Trading futures on Saxo Trader
What are futures? • A contractual agreement to buy or sell a particular commodity or financial instrument at a predetermined price in the future • ‘Futures’ are standardised contracts that are traded via an exchange with the only variable being the price
Why do they exist? â€˘ Futures contracts primarily exist to hedge risk â€“
Enables investors to either speculate in- or hedge against price movements of the underlying asset
â€˘ A side benefit to this is that they sometimes also produce a good price forecast
Who trades futures? â€˘ commodity users, commodity suppliers, and speculators.
Trading futures on Saxo Trader
Trading futures on Saxo trader is simple • Within the trade window you have: – – – –
Trade buttons Cost Nominal value Margin requirements
Futures level 1 Agenda • What are futures? • Why do they exist? • Who trades futures? • Trading futures on Saxo Trader What are futures? • A...