LOOK AHEAD TO MORE OPPORTUNITY WITH FUTURES

 

FUTURES OVERVIEW

A Future is a contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price on a specific date in the future.

Futures contracts can derive from a variety of assets, from traditional commodities such as corn, wheat, and orange juice to different asset classes such as government bonds, interest rates, energies and stock indices.

Low costs and transparent pricing

Because Futures are highly liquid exchange traded financial instruments, they can be traded on tight spreads. You’ll find that transaction costs are low, and pricing is transparent. This is due to the level of specificity found in Futures Contracts, and also results from the regulations imposed by the various exchanges.

No physical delivery

Note that Cornèrtrader does not support physical delivery of the underlying security on expiry of a Futures Contract. On or before the expiry of a Futures Contract, Cornèrtrader will cash settle your positions on your behalf.

 

FUTURES: TRADING ON MARGIN

Actual payment on Futures doesn’t happen up front, as Futures contracts are essentially agreements to buy or sell a certain asset at a given date in the future. Traded on “margin,” buyers and sellers place collateral on their Futures.

The size of the margin is determined by the Futures exchange and is the same for all traders. Depending on the asset you are trading, a 1%-10% in margin is generally required.

Use your Stock portfolio as margin

Cornèrtrader allows you to use the value of your Stocks as collateral for margin trading. This provides you with extra flexibility when managing your portfolio – making it easier to act as you identify trading opportunities. 

 

EXPLORE CONTRACT OPTIONS

In addition to Futures, you might consider trading the world’s most liquid exchange listed options contracts. These are known as Contract Options on the Cornèrtrader platform.

Both Contract Options and Futures are listed on a derivatives exchange and provide you with access for trading the world's most liquid markets, including currencies, indices, commodities and more.