Highlights On Futures

Highlights On Futures

Futures contracts for currencies usually end in the standard three-month period (quarterly). In this way, traders, through forex trading platforms, will have enough time to perform an analysis of the perspective and the possibilities that will help in future decision making unlike in the Bull market (ตลาดหมี ,which is the term in Thai).

The history of the futures dates back to the beginning of the 18th century when the rice supply contracts with the Japanese producers were closed before the time of harvesting. As far as our issues are concerned, future contracts take legal form and begin to be applied a century later, after cereals entered into the Chicago Stock Exchange.

Futures Assignment And Pricing

What are the futures necessary for? In general, these types of contracts have been created to help minimize the risks of future deliveries, freeing them from market dependence. More simply: The prices of the goods are initially set in any case regardless of the current price of the assets at the time of delivery. And where does the benefit for the provider reside here? Well, in guaranteeing the fulfillment of the obligations of the buyer. And where is the advantage for the buyer? He, in any case, receives the products purchased, regardless of their financial situation at the time of delivery.

All futures contracts can be divided into two categories: Direct and Indirect. What is the meaning of this separation? As far as direct contracts are concerned, they involve the transfer of assets fully available to the buyer. While in indirect contracts, assets temporarily become the property of the buyer, then within an agreed period, they change ownership under the conditions of a reverse transaction. It should be noted that less than 1% of futures contracts are closed with an eye on the immediate delivery of goods/assets. All remaining transactions of this type are closed in the hope of obtaining benefits.

The price of futures is dictated by the market: An increase in demand generates an increase in prices, just as the fall in demand will mean the fall in price.

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