Futures
A Futures contract, or Futures for short, is the name of a binding exchange contract and is considered an unconditional forward transaction.
The futures contracts brokered by LVAM are standardized, include an obligation to make additional payments and can be bought
an sold on any trading day. Accordingly, the maximum possible loss in the investment is unlimited.
With Futures contracts, you can benefit from rising (long) as well as falling (short) prices on the respective market. Gains and losses result linearly from the course of the underlying asset and are immediately deducted from the account.
If the Futures contract is not closed by entering into an offsetting position before the end of the term, the purchase (long) or delivery (short) of the underlying is obligatory.
Trading in Futures contracts covers the entire spectrum, from an extremely speculative orientation (high margin-to-equity ratio) to pure hedging (e.g. short gold). The necessary knowledge is essential for successful trading with Futures contracts.
Futures contract
Benefits Futures
Reduced capital requirements through leverage.
Linear profit development.
High return potential and high market liquidity.
Yield opportunities with rising and falling price developments.
No issuer risk.
BENEFITS FUTURES
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Reduced capital requirements through leverage.
-
Linear profit development.
-
High return potential and high market liquidity.
-
Yield opportunities with rising and falling price developments.
- No issuer risk.
Example Long
Example Long
| Light Sweet Crude Oil | ||
| Product symbol | CL | |
| Trading place | NYMEX CME GROUP / NEW YORK | |
| Contract size | 1000 barrels | |
| Trade price | USD and cents per barrel | |
| Minimal trading movement | 0.01 USD per barrel |
CRUDE OIL SPECULATION ON A RISING PRICE AND THE PRICE IS RISING
| Price | Contract value | |||
| BUY TO OPEN | USD 90.00 | USD 90‘000.00 | ||
| SELL TO CLOSE | USD 99.00 | USD 99‘000.00 | ||
| Profit without commission | USD +9’000.00 | |||
| Profit plus commission | ||||
| (USD 190 per individual Futures contract) | USD +8‘810.00 |
CRUDE OIL SPECULATION ON A RISING COURSE AND THE PRICE FALLS
| Price | Contract value | |||
| BUY TO OPEN | USD 90.00 | USD 90‘000.00 | ||
| SELL TO CLOSE | USD 81.00 | USD 81‘000.00 | ||
| Profit without commission | USD -9’000.00 | |||
| Profit plus commission | ||||
| (USD 190 per individual Futures contract) | USD -9’190.00 |
Example Short
Example Short
| Gold | ||
| Product symbol | GC | |
| Trading place | COMEX CME GROUP / NEW YORK | |
| Contract size | 100 troy ounces | |
| Trade price | USD and cents per troy ounce | |
| Minimal trading movement | 0.10 USD per troy ounce |
GOLD SPECULATION ON A FALLING PRICE AND THE PRICE FALLS
| Price | Contract value | |||
| SHORT TO OPEN | USD 1’300.00 | USD 130‘000.00 | ||
| BUY TO CLOSE | USD 1’250.00 | USD 125‘000.00 | ||
| Profit without commission | USD +5’000.00 | |||
| Profit plus commission | ||||
| (USD 190 per single Futures contract) | USD +4‘810.00 |
GOLD SPECULATION ON A FALLING PRICE AND THE PRICE RISES
| Price | Contract value | |||
| SHORT TO OPEN | USD 1’300.00 | USD 130‘000.00 | ||
| BUY TO CLOSE | USD 1’350.00 | USD 135‘000.00 | ||
| Profit without commission | USD -5’000.00 | |||
| Profit plus commission | ||||
| (USD 190 per single Futures contract) | USD -5’190.00 |
