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Investing in futures and options

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Archie Heron
Investing in futures and options

On the stock market these assets may include, but are not limited to, stocks, bonds, currencies, but also stock exchange indices.

In the case of futures contracts, the conclusion of the transaction (contract) and the settlement of the terms of the transaction take place at different times.

An example might be a farmer's contract with a recipient for future deliveries, even before harvest.

Futures are an effective way to limit the price risk of a hedging instrument because the price of the underlying is set in the contract.

Commission rates vary depending on the office, the way the orders are sent (commissions from internet orders are the cheapest), the turnover you make.

Of course, we should also look at factors such as the reliability of the online ordering system (whether there have been breakdowns in the history of the broker concerned and how quickly they have been removed) and the usefulness of the system, employee competences, friendly service, or the office it organizes for its investors training, other costs.

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Archie Heron
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