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 pre-determined 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? • Futures contracts primarily exist to hedge risk – Enables investors to either speculate in- or hedge against price movements of the underlying asset
• A side benefit to this is that they sometimes also produce a good price forecast
Who trades futures? • 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
Account Summary
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