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

Thank you