A futures contract is a derivative; its value is based on
an underlying security. In a futures contract, two parties
essentially agree to buy and sell a particular asset, for a
fixed price that is predetermined, at a specific date in
the future. The delivery and payment of the asset is
done on the predetermined future date.
A futures contract can include underlying assets that
could be commodities, stock, currencies, interest rates
and bonds. A recognised stock exchange acts as a
mediator between the two parties.
Futures are usually used to hedge against risk or
speculate the prices.
OGS bring to you next generation futures trading
platform in UAE.
Some major securities used in futures contracts are oil,
gold, wheat, currencies such as the AUD/USD or
EUR/USD, share indices such as the ASX SPI™ 200,
S&P 500, Nikkei or FTSE Index)
Advantages of Futures Contract
- High Liquidity
- Leveraged Trading With Futures
- Higher Profit Potential
- Lesser Commission Charges
- Futures Markets Are Fairer