Futures
Futures contract - a type of financial instruments, the most widely available on the market of derivative securities and in some sense historically preceding options. Although Russia is not generally characteristic of the usefulness of futures contracts is recognized only now, a primitive form of stock options trading practiced by Russian issuers extensively as a method of avoiding the restrictions of the Russian legislation on securities.
In its content futures are trading rights with a special mechanism, and different variants of realization of these rights.
In the broadest sense of the futures - a financial instrument that provides the right to buy or sell, with the following features:
1. Standardized delivery of the goods on the law. As a rule, can be recorded not only the month, but the number of deliveries, depending on the type of goods (raw materials, currency, securities, indices, interest).
2. Fixing the place of performance of the futures.
3. Standardized volumes of goods in respect of which the futures contract is (140 tons to 1,000 tons, 100 shares, 1,000 troy ounces).
4. Of these features imply the requirement of universal value of the goods and, consequently, the possibility of rapid conversion from one futures contract terms for other groups within the same type of goods. Homogeneity of goods in real property other than goods of a given group is provided by a system of correction factor, which provides complete convertibility of certain goods in the other subspecies.
5. Warranty futures transactions is ensured by the following mechanism of its conclusion and implementation. Issuer and guarantor of the deal in favor exchange (clearinghouse). Funds earned by contractors, paid by it upon the occurrence of specified events. The source of payment is the initial margin is introduced by traders. Margin, as a rule, is 5 -10% of commodity prices, in some cases can reach 70%. While the accounts of a clearing house acts as a margin deposit and a deposit at the same time, bringing some income paid the margin. In Russia, some exchanges do not accept deposits only in the ruble, but also in monetary form, as well as securities. This allows in some cases to increase the profitability of futures transactions.
The sudden change in futures prices include a protective mechanism in the form dovneseniya so-called additional margin and limit the rate of change in futures prices (and downward and upward). Properties futures maintain maximum liquidity and the protective mechanism of trade. Futures Turnover increased by the offset deals, which make the return of the initial transaction of purchase / sale and safeguards of a clearing house, always serving the counterparty to the transaction of futures.
Typically, transactions in futures is a professional activity that forces participants to maintain a constant volume of Margin in the clearing house, taking only gain or increasing the volume of a given amount of its obligations under the futures.
In its content futures are trading rights with a special mechanism, and different variants of realization of these rights.
In the broadest sense of the futures - a financial instrument that provides the right to buy or sell, with the following features:
1. Standardized delivery of the goods on the law. As a rule, can be recorded not only the month, but the number of deliveries, depending on the type of goods (raw materials, currency, securities, indices, interest).
2. Fixing the place of performance of the futures.
3. Standardized volumes of goods in respect of which the futures contract is (140 tons to 1,000 tons, 100 shares, 1,000 troy ounces).
4. Of these features imply the requirement of universal value of the goods and, consequently, the possibility of rapid conversion from one futures contract terms for other groups within the same type of goods. Homogeneity of goods in real property other than goods of a given group is provided by a system of correction factor, which provides complete convertibility of certain goods in the other subspecies.
5. Warranty futures transactions is ensured by the following mechanism of its conclusion and implementation. Issuer and guarantor of the deal in favor exchange (clearinghouse). Funds earned by contractors, paid by it upon the occurrence of specified events. The source of payment is the initial margin is introduced by traders. Margin, as a rule, is 5 -10% of commodity prices, in some cases can reach 70%. While the accounts of a clearing house acts as a margin deposit and a deposit at the same time, bringing some income paid the margin. In Russia, some exchanges do not accept deposits only in the ruble, but also in monetary form, as well as securities. This allows in some cases to increase the profitability of futures transactions.
The sudden change in futures prices include a protective mechanism in the form dovneseniya so-called additional margin and limit the rate of change in futures prices (and downward and upward). Properties futures maintain maximum liquidity and the protective mechanism of trade. Futures Turnover increased by the offset deals, which make the return of the initial transaction of purchase / sale and safeguards of a clearing house, always serving the counterparty to the transaction of futures.
Typically, transactions in futures is a professional activity that forces participants to maintain a constant volume of Margin in the clearing house, taking only gain or increasing the volume of a given amount of its obligations under the futures.
