What is meant by futures ?
With a future, a trader commits to a specific asset or stock at a specified time in the future to buy or sell (long or short) for a previously agreed price.
If the price of a value is e.g. 100 euros, you can commit to buying this value again in 3 months for 100 euros. However, if this value has risen to 120 euros after 3 months, you are contractually entitled to buy this value for 100 euros. Since you then buy a stock for 100 euros that is actually worth 120 euros, you would have made a profit of 20 euros per share. through the The use of leverage (e.g. 5) can increase the profit considerably. If one assumes that a value develops downwards, you would have to commit to selling it again at a certain price. The percentage that the value then fell down can then be pocketed again as a profit. It should be noted if a stock or currency develops in the opposite direction than one suspected, it can happen that you even have to pay afterwards to fulfill the contract.
Try to make profits with futures
As with the currency pairs on the Forex, you can also go long or short with futures. Levers can also be used here. To deal with futures Of course, making profits requires a certain amount of experience and a good feel for the market. On the other hand, futures can also be parallel are used to hedge trades in order to keep the loss as low as possible in the event of an unexpected price development.
Difference futures and options
The difference between an option and a future is that you can end the contract earlier with an option. can repel the value. The expiry date of a future, on the other hand, is binding and cannot be ended early.
Markets for futures
Futures can be traded on almost every major exchange. Trading futures is possible with individual stocks, indices, commodities or currency pairs on the Forex.