Translated from Russian by Google Translate
28 Август 2009

Comparison of the futures market and currency market Forex

The futures market is quickly growing segment within the composition of financial markets. Futures market is a combination of several interconnected trading floors, each of which is Narrow. But there are also more developed areas, which provide the opportunity to operate a large range of assets. All transactions on the futures markets are carried out by specialized companies that are accredited by the exchanges. The futures market can be attractive, especially for small and medium traders, since it is not required to conduct trading operations of impressive facilities.


Example of the transaction in the futures market:

Suppose you assume that the assets (shares) on the U.S. stock market will rise. If you think that price for a contract S & P mini is the best at this time shows the dynamics of the stock market, you decide to buy futures on S & P mini. Then you pick up the contract at current prices 1 323.75 / 1 324.00 (Bid / Ask fields).

You are well aware that the margin requirements for contract S & P mini equal to $ 5 000 per contract. Its overall balance is $ 26 000. That is, we can buy 5 contracts ($ 5 000 * 5 = $ 25 000). You place the order for opening a long position on the quote is 1 324.00, after which you come on record that you made a deal. After some time the price rises to the level 1 401.25 / 1 401.50, and you decide to close the position, that is to sell 5 contracts. Now let’s calculate the profit gained as a result of trading.

Bought contracts on the price of 1 324.00 and sold them at the price of 1 401.25

Sravnenie futures market and currency market Forex

Recently, more and more traders come to the futures market to profit. But if you look at more recent future, we can see that the futures market is used by investors as a safe haven as a place of their insurance risks from excessive price changes (hedging). Today is very different from the recent past futures markets. This is primarily reflected in the range of participants. The current investors are sufficiently important role in the dynamics of the market. The abundance of participants ensures high liquidity of assets, making the futures market is much more attractive.

And now a few words about the Forex in the context of our theme. Currency market compared with the futures market has many advantages. First of all, the advantage lies in the fact that futures markets are limited geography of a given region. For example, futures markets are the U.S., Canada, etc. That is, in some markets you will be denied access. But apart from this, lack of will be that each futures market is due to its features: features of transactions, etc., ie depending on the region will have their own nuances. General rules of trade that would have been common to all, without exception, markets, no, and this greatly complicates the task.

Forex Market works round the clock 5 days a week. The futures markets have a clear schedule of work. So much more convenient to trade at any convenient time, than adapt to the daily routine of the futures market.