Crude oil futures
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Main article national Russian exports - is, of course, oil. If its value is growing, the economy is made up favorably, and if falls, the budget deficit and other problems can not be avoided. The price of oil is formed market way, due to supply and demand. Oil is traded via futures contracts with delivery on a certain date called "expiration date."
The oldest stock exchange instrument, futures on oil, for several decades, determines the course of the global economy.
Crude oil futures - is a contract that allows the price to get the conclusion, or sell in the future at the time of expiration, ten barrels of oil. Also deliverable in oil futures, is also calculated. These futures are traded in the money at expiration. Expiration of futures is an annual, semi-annual, three-month and one month.
In the case of futures on oil, more liquid and are common futures expiry of one month. In the month quotations of the table have their standard notation, which is common in international practice.
October 8, 2008 in the market of futures and options RTS FORTS put into circulation a futures contract on oil varieties «Brent». Contract code in the trading system FORTS «BR». The introduction of this contract gives new opportunities to participants FORTS Derivatives market for investment funds in commodity assets and hedging of commodity price risks. crude oil «Brent» is a standard grade in the European market. From quotations «Brent» depends on the selling price of Russian oil brand «Urals». Thus, market participants can build arbitrage strategies with these two varieties on FORTS site.
A futures contract is useful and oil companies because it allows you to hedge changes in the price difference between «Brent» «Urals», as well as, hedge against the decrease in oil prices, which is quite important, when the high volatility in the market of "black gold". At the same time the cost of the hedge can be fully attributed to the cost of the finished product itself, as all operations are conducted in the Russian jurisdiction for rubles.
Futures on the RTS index
Futures on the RTS index make it possible, for hedging risks in portfolios of shares, and for games on the rise and fall of the stock market.
Today, the futures index is equally accessible for both large investors and market participants with more modest capital. Turnover emergency section FORTS from July 2008 to July 2009 amounted to slightly less than ten trillion rubles. This accounts for the bulk of trade in futures contracts and the most liquid - a futures contract on the RTS index.
RTS Index today one of the main indicators of the Russian stock market. The calculation base for this indicator includes 50 shares of Russian issuers. It is calculated in real time during the trading session on the basis of data on deals made on the RTS classical market. In this case the RTS Index futures are executed not by delivery of the underlying asset, but by cash settlement. By entering into the transaction with futures on the RTS index, the bidders undertake to pay or receive the difference between the transaction price and the exercise price of the futures contract, the difference is called variation margin. At the same time, the price of the contract is considered to be based on the average value of the RTS index in the last hour of trading in the last day. Futures on the RTS index may be useful in a variety of situations - it can be used for the purchase and sale of the entire Russian stock market. Of course you can use it to make deals with a model portfolio of stocks focused on the structure of the RTS index. Finally, based on the principles of diversification, based on it, can lead Portfolio Management does not correlate with the tools used to calculate the index. On the basis of futures can create synthetic positions in the index of second-tier stocks, and arbitrageurs can use the index to build various speculative and arbitrage strategies using futures and own shares on the spot market.
Professionals say that thanks to the liquidity of the index, it is already work well all the rules of technical analysis, and systemic risks are extremely low. This greatly reduces the burden on traders, and helps to save time and effort.
Today, all derivative instruments are more popular among the participants of the stock market, but other than the futures of the RTS index has also futures on sector indices, the RTS index -consumption goods and retail, the RTS Index - Consumer and RTS Index - Oil & Gas.
Futures on the sectoral indices are very similar to the RTS, but their liquidity is considerably inferior to the liquidity of the futures on the RTS index, but the main advantage of the futures market, compared with the market FORTS, it is a low commission. This significantly reduces costs and allows the trader to achieve high results in intraday trading.
Futures on stock
Futures, Commodity Futures is a contract of sale of the underlying asset at the conclusion of which the parties agree on the level of prices and terms of delivery of the asset, as well as carry obligations to exchange up to his execution. Accordingly, the futures contract on the action, it is the futures, the underlying asset of which are the shares of one company or another. Today, the futures market is growing rapidly in Russia, its volume is already comparable to the spot market securities.
Futures for shares - a deliverable futures, ie at the time of maturity or expiration of the futures contract there is physical delivery of shares. Futures contracts on Russian shares traded in the main market of futures and options in the emergency section of RTS. In order to buy or sell a futures contract on the exchange, there is no need to pay the full value of the contract, it can be limited to only part of the cost of 12-15 percent, as long as your money covered warranty or insurance coverage contract. Insurance fee imposed at the stock exchange at the opening position in a futures contract, usually between two and ten percent of the current market value of the underlying asset. She is charged with both the seller and the buyer. Once the buyer and seller have concluded on the stock exchange a futures contract, or any link between them is lost and party transaction for each of them begins to act calculated exchange chamber. Thus, the insurance cover is designed to ensure the financial viability of a clearing house exchanges in a changing market environment. The Exchange reserves the right to increase the margin rate. In some cases, they increase leads to a change in the contract value, this is due to the fact that small market participants becomes insufficient funds to cover the increased margin requirements, and they begin to close their position, which ultimately leads to a decrease - if closes a long position, or increase - if the short position is closed prices.
It is important to understand the characteristics, and the specification of each futures contract before the start of trading them. Also, you should remember about the fact that futures on the second-tier stocks, as well as the underlying asset, often not liquid, but it can mean a wider spread (the difference between the purchase and sale of futures), and as a consequence of the increase in costs in transactions with these contracts.
Derivative financial instruments (derivatives) in recent years are very popular with investors as an attractive tool for speculative trading. On the other hand, they do not go with the first pages of the world's business media, because of their direct relevance to the scandalous losses and the collapse of some financial institutions…