The companies below offer futures trading in Australia. Futures Trading allows you (the investor) to buy and sell commodities at a pre-arranged date in the future, at a specified price. The price of the contract is a market determined price, and Futures are traded on a global range via a Futures Trading Exchange. When looking for a good futures trading service, make sure you check what commission fees are involved as well as the account minimum. If you want a highly-managed account then check that an account handling and futures brokers service is offered. It is extremely important that you read the terms and conditions of any company before you open an account. If you have any questions do not hesitate to contact the customer support team for more information.
Compare Futures Trading
Learn more about futures trading
Futures Trading involves predicting future commodity prices. Some of the main Commodities traded are farming products like coffee and sugar, metals like steel and copper, livestock (beef),oil and timber. Currency is also considered a commodity and it is possible to use futures trading in the foreign exchange market. Commodity trading involves the investor speculating on the future price of a commodity. If the investor believes that the price of a commodity will increase in the future, they buy a futures contract. If they believe that the value of a commodity will go down they see the futures contract.
Explain a Futures Contract?
Unlike with stocks or bonds investing, it is not necessary with futures trading to own or purchase anything. You are betting on the commodity and what its value will be in the future. A futures contract means that the investor buys or sells a commodity for a predetermined price and at a prearranged time period. He or she is then obliged to buy or sell that commodity at a future date.
Do you need a lot of money to start trading?
On opening a futures account, you will need to pay an initial margin. This is likely to be a percentage of the value of the contract that is agreed with the broker. The price of the margin is also set by the broker or exchange, and will change according to fluctuations in the market. Usually margin deposits are around 2% to 10% of the value of the contract.
What are the risks involved with futures trading?
Futures trading can be very risky and if you are using your own capital there is the possibility of losing it all. By accepting a Futures contract, there is the potential to lose all of your invested funds, your initial margin and additional funds. If you want to engage in futures trading you should only use capital that you can afford to lose. The risk of losing capital is extremely high in this type of trading, and most traders will lose capital at some point.
17 May 2012 14:30
You should consider taking out a life insurance policy if you have anyone who is financially dependent on you.
14 December 2011
Which Way To Pay
The Australian stockmarket saw losses at close of a volatile trading session following news from the US Federal Reserve that interest rates are being held steady, indicating no new stimulus measures for now. The benchmark S&P/ASX 200 index lost 0.1% throughout the trading day, closing at 4190.50.
01 November 2011
Which Way to Pay
Following the decision from the Reserve Bank of Australia to cut interest rates by 0.25%, the largest banks in Australia, Commonwealth Bank and Westpac, followed suit.
08 August 2011
Which Way to Pay
Australian shares have dropped 3% today, a total of $32 billion has been wiped out. Following the 4% plunge the shares saw on Friday, the S&P/ASX 200 index fell 119.3 points, 2.91%, leaving it at 3986.10. The broader All Ordinaries index was down by 113 points, 2.72%, to 4056.70. This is the first time the S&P/ASX 200 index has dropped below 4000 in 2 years.
17 March 2011
Which Way To Pay
The Australian share market was recorded at a six month low following on from instabilities after Japan’s earthquake and tsunami natural disasters. The situation appears to worsen each day as it turns into both a humanitarian and economic disaster.