Trading in futures are a great medium for hedging and managing risk. Futures are derivative contracts that derive value from a financial asset such as traditional stock, bond, commodity or currency and thus can be used to gain exposure in various financial instruments including stocks, indexes, currencies and commodities.
Al-Shuaib offers futures trading opportunities in currencies, indices, precious metals, energy products and more. This provides you with a great way to invest your money in multiple and diverse portfolios.
Take your pick from various order types to suit any trading style and get excellent execution at minimal costs.
Whether you are an experienced trader looking for best rates or new to futures trading, our market analysis gets delivered to your mailbox every day and enables you to be a better-informed trader.
We deliver what traders in today’s financial markets need most of all; fast execution. You can execute your orders in split seconds.
To deal in a futures contract a trader has to only invest a small fraction of the value of the contract called ‘margin’. For e.g., an investor can trade a US$100,000 worth of commodity, by paying US$2,000 as margin in futures trading i.e. just 2%.
Futures markets are very liquid and most markets are open throughout the day, providing traders with easy ins and outs. There are a sizeable number of future contracts being always traded. Thus orders are placed faster as there are buyers and sellers readily available at any given point of time. Also it is rare that prices will vary dramatically, particularly for contracts with an expiry date of the next few weeks or months.
Futures markets move much faster than traditional investments like equities or bonds and an investor trades in a commodity secured with margin due to which the earning potential is much higher. On the flipside, any imprudent move can just as easily also lead to greater losses. However, losses can be pared with stop-loss orders.
Speculating with futures contracts is basically a paper investment and you don’t have to worry about storing the physical commodity. The term contract is used as there is an expiration date bound to the contract. The exchange of the commodity within the contract takes place in the uncommon scenario of the delivery of the contract.
The commissions on Futures instruments is much lower as compared to investments and the trader is liable to pay that only after he ends or liquidates his position.
Futures markets are comparatively fairer as compared to stock markets as it is quite difficult to get any confidential information. Besides official market reports get released as soon as a trading session ends so any trader can analyze them before trading resumes again the next day.
Futures contracts give investors the ability to garner profits from the price margin of an instrument prior to its expiry date. Futures are much-preferred nowadays as trading instruments for traders looking for flexibility and diversification of their portfolio. The futures market is a highly liquid one with large volumes of transactions executed each day. Opening and ending positions can therefore be done quickly with swift execution sans any delays and help you to maximize your profits.
Important terms in Futures trading:
Central counterparty: Future contracts are leveraged positions with high volatility. This can result in counterparty risk wherein one party to a trade fails to honor its settlement obligation. To avoid such a situation, a clearing house steps in as a counterparty to every trade, to extend an assurance that the trade will be settled as originally proposed.
Liquidity factor: It is an important aspect of a commodity market with many buyers and sellers to permit transactions without any palpable variation in price.
Expiration: Usually the last date when an option may be implemented. It is not uncommon for an option to end on a specified date in the month prior to the delivery month for the underlying futures contracts.
Delivery date: The handover of the cash commodity from the seller of a futures contract to the buyer. Each futures exchange has set procedures for delivery of a cash commodity.
Trading Forex / CFD's on margin carries a high level of risk, is subject to rapid and unexpected price movements, and may not be suitable as you could sustain a total loss of your deposit. Leverage can work against you. Do not speculate with capital that you cannot afford to lose. Be aware and fully understand all risks associated with the market and trading. Prior to trading any products marketed by Al-Shuaib International Financial Brokerage Co. or its affiliates, carefully consider your financial situation and experience level, and or seek independent financial advise. If you decide to trade products marketed by Al-Shuaib International Financial Brokerage Co. you must read and understand the Financial Services Guide and Product Disclosure Statement. Viewer agrees that Al-Shuaib International Financial Brokerage Co and its employees or agents assume no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items delivered or received via this domain. Data and commentary is strictly for general educational purposes, and as such Al-Shuaib International Financial Brokerage Co. does not make any express or implied warranties of the fitness of this information for a particular purpose or use or guarantee the accuracy, timeliness or completeness of the information available herein. As a prerequisite of visitation or use of this domain the viewer agrees to indemnify and hold Al-Shuaib International Financial Brokerage Co. and its employees and affiliates harmless from and against any and all losses, damages, liabilities, costs, charges and expenses arising out of any use or reliance upon information obtained through this domain. Al-Shuaib International Financial Brokerage Co. is authorized and regulated by the Ministry of Trade and Industry as a Financial and Monetary Intermediary.