Russian traders used to use in their work a tool such as futures.RTS, MICEX and other exchanges make it possible to do this in relation to a wide range of financial transactions.What are the features of the implementation of the relevant trading strategies?What are futures and how they help traders earn?
What futures
generally accepted definition among futures traders - are financial instruments that allow for fixed-term contracts on the underlying asset, which implies the conclusion between the buyer and seller agreed on a price and terms of the transaction.In turn, other aspects of the asset, such as, for example, quantity, color, size and so on. E., The individual specifications stipulated in the agreement.Futures - is sufficiently versatile instrument.They can be adapted to a variety of areas of trading.
futures - derivatives it?
Yes, it is their variety.The term "derivative" is understood by many traders as synonymous with the phrase "derivative", that is, one that is complementary to classical sales transactions.Derivatives and futures - a written agreement that specifies the requirements for the contract for the seller and the buyer.The specifics of any derivative that it is in fact in itself may be the subject of a contract of sale.That is the real transfer of goods from the supplier to the buyer can not be.
History futures
to adequately examine in detail the nature of futures, it will be useful to know how did these financial instruments, what are the main historical stages of their implementation in financial turnover.Some traders believe that the mechanism of the relationship between the seller and the buyer, which now fits the definition of futures, appeared long before the reporting tool appeared on the market.As often happens in the economy, a phenomenon first appeared, and then - a term describing it.
market demanded innovation
One of the main types of products has always been the grain.If we talk about the period before the end of the 19th - early 20th century, it was at all among the key subjects of world trade.The farmers, growing crops, sent them to customers by land or by sea.On the grain market in the autumn it was often a surplus of commercial offers - farmers tried to sell the crop as soon as possible.In turn, the spring could be a shortage of grain, which simply can not grow, while that has not been implemented, even in the autumn kept pace deteriorate, as it was often nowhere to store.Market once had to resolve the imbalance.So there were urgent financial tools that allow farmers to grow grain, as well as suppliers of any other type of agricultural products, to enter into contracts with customers even before the grains ripen, or to arrive at the point of sale.
Universal tool
Those agreements were called forwards (from the English. Forward - "Forward").Futures - it can be said to adapt to the characteristics of the forward contract trade on the stock exchange.Their appearance experts associated with the established standards of business transactions, so appropriate arrangements can be enter into whatever type of goods sold.As a result, futures trading has spread to the deal, under which are bought and sold not only grain and other agricultural products, but also raw materials, metals, some prepared food products: sugar, coffee, and so on. D. For a relatively new, if we talk about the history of commodityrelations tool adapted and financial exchanges.
From raw material to the stock indexes
There are indications that the first sale of futures trading was conducted on the stock exchange for Dow Jones index of transactions of the same name.As a result, the financiers have received a great tool insurance of financial risks - just as it would make suppliers of grain in autumn.Over time, the index futures have become so common that the volume of trade in them sometimes became superior performance of the classic transactions.
futures exchange market
new financial instruments began to penetrate also in the foreign exchange markets.One of the factors of interest in the use of futures traders became, according to some experts, the abolition of the "gold standard" in the US in 1971.Immediately after the introduction of new rules quotations on the world market began to suffer severe currency fluctuations.Traders speculated that futures - this is the tool that will help the market to pass the phase of high volatility.
corresponding trade mechanisms have been introduced, and because of the rapid growth of their popularity, experts have suggested that this was exactly what the market demanded.Futures on the dollar and the ruble, as noted in a number of sources, was first signed in April 1998.On the first day of trading, the total amount of contracts exceeded 200 million rubles.
futures in Russia
By the way, the history of Russian exchange trade originates from the time of Peter the Great.And in the early 20th century in Russia operated according to some 87 commodity exchanges.Since the late 20's and in 1991 the first trade this institution in our country did not function.But after Russia's transition to a free market has become one of the key to the economy.
When Russia began to be held in the first transactions in futures?There are indications that the first precedents of use of the instrument were recorded in 1996 at the St. Petersburg Stock Exchange.They began to appear first analytical articles, which puts forward the thesis about the prospect of engaging in the Russian futures trading.In the 1990s through the financial instrument began to perform the contract on state and municipal bonds.
now on both major Russian stock exchanges applicable futures (RTS and MICEX).At first there's even a special segment for trading with this financial instrument - FORTS.Available on FORTS futures and options (another popular way to sign contracts).It will be useful, by the way, consider their differences.
How are options on futures
key criterion of difference from the futures option - the owner must first meet the conditions under the agreement.In turn, second financial instrument allows the side of the transaction does not comply with the terms specified in the contract.For example, do not sell the shares if they fell compared with the price at the time of purchase.
Types futures.Staged
but will continue to study the futures.Modern merchants classify them into two types.Firstly, so-called isolated staged futures.They are a contract at the time of execution of which the buyer undertakes to purchase, and the seller - to cede the agreed specifications of the transaction amount of certain assets.This will be the futures price, which is fixed at the most recent auction.If the contract expires and the seller will not give an asset it can expect penalties.
Calculated
There are also futures settlement.Their peculiarity is that the buyer and seller are calculated together in the amounts that make up the difference between the price of an asset at the time of signing and execution of the agreement without regard to its actual delivery.
structure specification futures
One of the key elements of the futures transactions - specification.It is a source, which fixed the basic terms of the contract.BOM structure of transactions of this type are usually as follows: indicate the name of the agreement, particular its type - current or staging, the value of the underlying asset terms, as well as some speculative options.Among the key can be called a tick or tick price changes.
its value depends on a specific asset.For wheat, if we talk about the world's major stock exchanges - it is about 5 cents per ton.Knowing what is the volume of the futures contract, the trader can easily calculate the total price change for the entire amount of the asset.For example, if an agreement for wheat by 200 tonnes, it can be calculated that the minimum adjustment of the price will be $ 10.
Oil futures
How is trade, for example, futures on Brent and other grades of oil?Very simple.In today's commodity exchanges traded specified grade of oil, and two more - Light Sweet and WTI.All of them are named marker because other grades of oil are estimated on the basis of correlation with the value traded.Contracts for oil are carried out on the two major exchanges - NYMEX, in New York, as well as the ICE, in London.In the US there is a trade in oil Light Sweet, in English - the other two varieties.Features black gold trade lie in the fact that they are around the clock.
generally accepted benchmark for traders in the world stands varieties Brent.This oil is a marker for a significant portion of the world's black gold grades, including Russian oil Urals.However, as noted by some analysts, among the traders have activists who do not consider it appropriate to keep the standard of Brent.The main reason - it is mined mostly only in the North Sea, the Norwegian oil fields.Inventories as of reduced, resulting in decreased, according to some analysts, the liquidity of the commodity, and the price of oil can not reflect the real market trend.
Brent futures can be easily identified by the acronym BRN London Stock Exchange ICE.Full name sounds like a contract Brent Crude Oil.It supplies oil under contracts per month.Accordingly, you can bargain with the interval of a month.The maximum duration of the contract - 8 years.There are short-term oil futures, and there are long-term.The value of the relevant contract - 1 thousand. Barrels.The value of 1 tick - cents, that is the minimum change in the contract price - 10 dollars.
How to win in the oil trades with futures?Quotes of oil, according to some economists, are dependent on the state of affairs in the global economy.If a person is well versed in the subject, he may try to sign a contract to buy or sell oil at a set price, thus opening long or short position, respectively.For example, when oil cost $ 80 a barrel man suggests that after 3 months of raw materials will increase to $ 120.He concludes 1 minimum contract for the purchase of black gold at a price of $ 90 per barrel.Comes 3 months.Oil is expected to expensive $ 120 per barrel, and in the disposal of the trader, it is for the price of 90. He was under the terms of the Exchange immediately laid the difference is charged $ 40.
futures and currency
It is obvious that in order to trade futures using oil trader will require significant financial investments.The minimum value of the contract, as we have already noted - 1 thousand. Barrels, that is, if you take the current, not the high prices for oil, will require investments of about 50 thousand. Dollars.However, the trader has the opportunity to earn by signing on the dollar futures on the MICEX, for example.Under the terms of the Exchange minimum contract size is 1 thousand. Dollars.Tick - 10 kopecks.
example, a person suggests that the US dollar will decline from the current 65 rubles to 40. He opened a long position on the sale of one contract at a price of, say, $ 50, period - 1 month.A month later the ruble actually strengthens position - up to 40 units per US dollar.Man also has the right to sell a specified amount in the contract specifications at the rate of $ 50 and help out with the exchange rate difference of 10 rubles per unit of US currency.But if he did not guess from the course, he somehow have to fulfill obligations to the Exchange.This usually occurs due to placement on the trading floor of the deposit account of the desired size.
Similar arrangements are possible earnings when trading in shares of companies.When suspended, expert analysis of the real trader can count on excellent earnings through futures.Trading on the stock exchanges today are sufficiently comfortable, transparent and protected by Russian legislation.At the disposal of the trader, as a rule, there is a convenient analytical instruments such as futures on the chart selected asset.Using the appropriate financial mechanisms among Russian financiers has become fairly stable popularity.
