Exchange Futures

On the market are important to sell as buy or Exchange, but even more is ensuring that all these processes can be conducted in the future. Since a few decades ago on a par with the stock market and the currency a market that increasingly takes more strength thanks to the long-term benefits that this offers has been developing, we are talking about the market’s future. The futures market makes its appearance in 1973 where you think the Chicago Board Option Exchange, which was the first official stock exchange futures; from there its great expansion into Europe was manifested with the appearance of another futures market in London in the year of 1978. CABE emphasizes that the use of the futures market it came using by agricultural workers since feudal times, of course, that the market’s future from that era had bases different from those of today. The futures market is the possibility of commercial events of any kind, through a prior agreement that offers the possibility of making valid at a future date, where profitability is greater than the current one.

One of the great advantages offered by future market, is the establishment of a prior contract worth a stipulated favoring the parties, since the value of the actual unit may decrease or increase; the execution of this agreement confirms that the sale of this value will be for the already stipulated price regardless of the variation in economic factors. The futures market sells mainly with products such as: raw materials, precious metals, merchandise itself primarily with agricultural products and diverse. Since these being affected by environmental variables may vary their production need the establishment of a contract in the future so that none of the parties lose in the process. An important part in the futures market is the clearing house, as it is responsible for regulating compliance with clauses and stipulated economic determinations previously, also serves as Advisor, since it has as function the analysis of risk and probability of the increase or the decrease of the asset; all this with the purpose as the contract to have a chance very low to be a loss for both parties, on the other hand, this analysis provides a large percentage of likelihood of future gain. Another important part of the clearing house is to provide a periodic reporting system, that allows to know the factors such as parties: variation of prices. According to the mass movement of assets the gain or loss.

Results in the future. Surveillance both to enforce the contract correctly. It offers the possibility of a security deposit in order to cover the risks if the contract is not fulfilled. In conclusion, the futures market is an excellent choice for all those who wish to or have an expansive plan, since the establishment of a future contract favors the interest rates and ensures future profitability without the risk of inflation.