A futures transaction is required. Futures (futures contract)

Futures contracts (futures transactions or simply futures), the name of which comes from the English word denoting the future, are some type of transactions taking place on commodity or stock exchanges, contracts with strict standards of a fixed-term order, where there are two participants. The obligations of one of the participants in such a process include the sale of a fixed amount of previously designated goods, securities, and possibly currency. The second participant is obliged to pay for such a purchase. will be subject to implementation only after a certain period of time.

Futures transaction: features

The main distinguishing feature of futures contracts lies in their strict standardization. They are traded only on narrowly specialized exchanges. The prices specified in the terms of futures contracts are called futures. Due to the presence of the exchange, the seller of a futures-type contract retains the full opportunity to repurchase the contract at any convenient time. The liquidity of these contracts is very different from forward transactions. The presence of strict standardization means that trading is only allowed in such contracts, the terms of which are clearly defined:

• transaction sizes;
• trading units;
• delivery date;
• minimum price movements according to the terms of the contract.

Fig.2.1 Classification of exchange transactions.

Exchange transactions, their types and essence.

In the process of exchange trading, exchange transactions are concluded. The terms of these transactions affect the interests of both bidders and their clients (sellers and buyers). The Law of the Russian Federation “On Commodity Exchanges and Exchange Trading” defines an exchange transaction.

“An exchange transaction is a registered exchange contract (agreement) concluded by exchange trading participants in relation to an exchange commodity during exchange trading.”

Each exchange has special rules:

Preparation and conclusion of transactions,

Registration of the concluded transaction and its execution,

settlements for transactions and responsibility for their implementation,

Dispute resolution.

The concluded transaction is subject to mandatory registration on the stock exchange. Based on the results of concluded transactions, information on the name of the product, its quantity, total value and cost per unit is subject to mandatory disclosure.

Exchange transactions can be classified according to various criteria, for example, by the object of exchange trading, which can be presented both as a real product and as rights to the product or to its conclusion. Depending on the conditions and content, exchange transactions can be with real goods or without real goods . The classification of exchange transactions is presented in Figure 2.1.

Transactions with real goods are concluded for the purpose of buying and selling a specific product. They are divided into transactions with cash goods, which result in the direct purchase and sale of goods. Such deals. In exchange trading they are called SPOT (spot) or cash (cash), as well as transactions in which the delivery of goods after a certain time, usually up to 4 months, but a transaction for a period of 6 months is also common. These are forward transactions. For cash transactions execution of the transaction begins at the moment of concluding the purchase and sale agreement. Therefore, an exchange game to increase or decrease prices is impossible. Accordingly, such a transaction is the most reliable. The conditions for concluding transactions may be different: according to samples and standards, based on a preliminary inspection or without inspection of the goods, according to exchange examination data, etc. Delivery is carried out within 1-5 days, the goods may be located:

· on the territory of the exchange in its warehouses. In this case, its owner receives a certificate (warrant) for the delivered goods, which is subsequently transferred to the buyer against payment.

· during bargaining on the way;

· be expected to arrive on the day of the stock exchange meeting;

· be shipped or ready for shipment.

But in any case, all this must be confirmed by relevant documents.

Forward transactions Forward transactions are urgent purchase and sale transactions at prices valid at the time of the transaction, with the delivery of the purchased goods and its payment in the future. Unlike futures, forward transactions are concluded on the over-the-counter market, their volume is not standardized, and the participants in the transaction aim not only to insure the risks of price changes, but also expect to receive the product itself - the subject of the transaction. Therefore, in the forward market there is a significant proportion of transactions in which actual delivery is made, and the speculative potential of these transactions is low. Forward transactions on the exchange are concluded for future goods at exchange prices at the time of the transaction, or at reference prices at the time of opening (closing) of the exchange, but can be concluded by agreement and at prices at the time of the transaction. The advantage of such transactions is to reduce the risk for the seller from lower prices, and for the buyer from increasing prices and reducing storage costs. The disadvantage of such transactions is the absence of guarantors and therefore the contract can be violated by any party and the lack of standardization of such contracts and, as a consequence, the length of approvals when concluding them. To reduce the degree of risk, forward contracts may be concluded with additional conditions such as: transaction with collateral (to buy or sell) and premium deals (simple, double, complex, multiple.)

Barter transactions- these are transactions of direct exchange of goods for goods without the participation of money. The proportions of the exchange are determined by the agreement of the two exchanging parties. The main reasons for concluding barter transactions are instability of monetary circulation, high rates of inflation, erosion of confidence in the monetary unit, and shortage of currency. Barter exchange is possible if the needs of the two parties to the transaction coincide, which is often achieved through a complex, multi-stage exchange. For exchanges, such transactions are uncharacteristic because they contradict exchange trading (there is no normal trading mechanism). The number of warehouses is growing. The spread of prices for the same product increases, etc.

A conditional deal is a deal, during which the broker, on the basis of an order agreement, for a fee, is obliged on behalf and at the expense of the client to sell one product and buy another. There is a fairly large time gap between selling and buying. In addition, such an order may not be executed by the broker. In this case, the broker does not receive any remuneration.

The successful operation of commodity exchanges is directly dependent on brokerage houses. Brokers receive income mainly not from membership on the exchange, but from their own intermediary activities. A special place in the system of exchange contracts is occupied by futures, options transactions and indices.

Futures transactions are a type of forward transactions. The most widespread futures contracts are for food, energy products and securities. Concluding transactions for a period of time was the result of the development of exchange trading, since selling and buying missing, and often even unproduced goods is possible only in the case of standardization of the product, the development of uniform criteria for evaluating the product, acceptable for both the seller and the buyer. Such transactions, as a rule, are concluded not for the purpose of buying and selling real goods, but in order to generate income from price changes during the contract period, or for the purpose of insurance (hedging) of transactions with real goods. Consequently, the subject of trading on the stock exchange is the price, and the terms purchase and sale are conditional. To limit the number of people willing to enter into transactions and to ensure the bidding process, both sellers and buyers are charged an advance payment of 8-15% of the transaction amount. To participate in trading, the client must open a special account on the exchange to which he must transfer the amount necessary for trading - the constant margin is about 3%.

Futures transactions are concluded through the purchase and sale of standardized contracts in which all parameters are stipulated, for except price. On a futures exchange, where prices for maturity contracts are often not specified, contracts are sold at the prices in effect at the time the transaction is executed, and, therefore, the current quote becomes the firm price for such transactions. This is what allows sellers and buyers of real goods to use the mechanism of exchange transactions to insure against unfavorable price fluctuations. Futures trading allows you to find a suitable seller (buyer) at a convenient time, quickly complete a purchase (sale) and thereby insure yourself against supply interruptions. In addition, exchange futures transactions provide confidentiality and anonymity, at the request of the client. Futures transactions provide ample opportunities for exchange trading, which in terms of volume significantly exceeds futures transactions for hedging purposes. For example, silver futures transactions exceed its global production by more than 50 times; for soybeans - in 20 times; for cocoa beans - in 10 once; for copper - 8 times; natural rubber - 5 times; corn - 3 times; sugar and coffee - 2.5 times.

All transactions are processed through clearing (settlement) chamber, which is the third party to the transaction. It is to the clearing house that the parties to the transaction have obligations. Thus, the clearing house acts as a guarantor of transactions, while ensuring the impersonality and anonymity of transactions. Before the contract is due for execution, any of the participants can enter into an offset (reverse) transaction with the acceptance of opposite obligations; the Client can buy (sell) the same number of contracts for the same period. And thereby free yourself from obligations, but on a reimbursable basis.

Option transaction- this is a special exchange transaction containing a condition according to which one of the participants (the option holder) acquires the right to buy or sell a certain value at a fixed price during a specified period of time, paying the other participant (the option subscriber) a cash premium for the security obligation, if necessary implementation of this right. The option holder can either exercise the contract, not exercise it, or sell it to someone else. The concept of an option can thus be defined as the right, but not the obligation, to buy or sell a certain value (commodity or futures contract) under special conditions in exchange for the payment of a premium.

The object of an option can be a real commodity, securities or futures contracts. Based on the implementation technique, there are three types of options:

Option with the right to buy or to buy (call option);

Option with the right to sell or to sell (put option);

Double option (put-and-call option).

The difference in the contract value for both long and short positions is determined by multiplying the quantity of goods by the difference in the execution price of the transaction and its current quote on the derivatives market,

G = C (P l -P 0).

Where P0- transaction execution price;

P 1 - current quote on the derivatives market;

WITH- quantity of goods.

The price at which the buyer of a call option has the right to buy a futures contract, and the buyer of a put option has the right to sell the futures contract, is called the strike price.

The size of the premium, other things being equal, depends on the expiration date of the option: the longer it is, the higher the premium. In this case, the seller of the option is exposed to greater risk, and for the buyer of the option, a longer duration has greater insurance value than a short option duration.

An important concept is the validity period of the option, which is strictly fixed.

Futures or futures contract are one of the most popular instruments on the stock exchange. Futures trading occupies a significant segment of the exchange market.

The secret to the popularity of this financial instrument lies in its high liquidity and the ability to choose from a large number of investment strategies. For novice traders, this segment of exchange trading seems complex and risky, but for experienced players it offers many opportunities, including hedging risks.

Futures contract. What it is?

So what are futures? The term comes from the English word future, meaning “future”. This emphasizes the fact that the contract is concluded for the actual completion of a transaction in the future.

Futures contract is an agreement in which the current market price of a commodity or asset is fixed, but the transaction itself will be carried out on a specific date in the future

The essence of the agreement is that the parties to the transaction come to a common opinion on the price of the goods and at the same time agree to defer payments under the contract. This type of agreement is very convenient for each of the parties, since it insures against situations when some serious changes in the market situation provoke fluctuations in market prices.

The purpose of such a contract is to attempt to reduce risks, maintain planned profits and obtain a guarantee of delivery of goods. A futures contract relieves a market participant from urgently searching for someone to sell or buy a commodity from. The exchange acts as a guarantor of fulfillment of the terms of the transaction.

Example of a futures contract

A traditional example of a futures contract would be a transaction between an agricultural producer and a buyer. The farmer speculates how much he wants to sell his goods for in order to recoup the costs of growing and make a profit. If this amount is approximately equal to the current market value, he signs a futures contract with the buyer for the supply of agricultural products at the current price, but after a certain period of time - for example, 6-9 months, that is, as long as it takes to grow the crop.

If the price of products falls during this time (for example, the year will be fruitful and there will be an oversupply of products), the manufacturer will nevertheless be able to sell the goods at the price specified in the contract. But even in the opposite situation, if there was a bad year and product prices rose, the manufacturer will have to sell at a price that is now unprofitable, but pre-specified in the contract. The whole essence and meaning of a futures contract is to fix the price of a commodity.

The assets of a futures transaction, in addition to real goods, are stocks, bonds, currency pairs, interest rates, stock indices, etc.

Futures trading. What are the advantages?

The high popularity of futures on the stock exchange is not accidental; the advantages of this financial instrument are as follows:

1. The ability to widely diversify a trader’s securities portfolio due to access to a large number of instruments.
2. High liquidity of contracts and the ability to choose different financial strategies: risk hedging, various speculative and arbitrage operations.
3. The commission for purchasing futures is lower than on the stock market.
4. A guarantee of usually no more than 10% of the value of the underlying asset allows you to invest not the full value, but only a part, in futures contracts, but at the same time use the leverage that arises when using a futures contract.

However, the investor needs to keep in mind that the amount of the collateral may vary throughout the entire life of the contract, so it is important not to lose sight of futures quotes, monitor these indicators and close positions on time.

The futures price is also unstable. Its fluctuations allow you to track the futures chart. During the circulation period, the value constantly changes, although it depends directly on the value of the underlying asset. The situation when the futures price exceeds the value of the asset is called “contango,” while the term “backwardation” means that the futures turned out to be cheaper than the underlying asset. On the expiration date, there will no longer be such a price difference between the futures and the asset itself.

Types of futures contracts

There are two main types of futures contracts: settlement and delivery.

Futures contracts gave birth to the commodity market. The participants in the transaction agreed on a price that suited both parties and on a deferred payment. This type of transaction guaranteed both parties protection from sudden changes in market sentiment. Therefore, initially only supply contracts were in force, that is, those involving the delivery of real goods.

On the current Russian derivatives market there are delivery contracts that ensure the delivery of shares directly, but there are quite a few of them. These are futures for shares of Gazprom, Sberbank, Rosneft, for some types of currencies and options

Today, futures contracts are primarily settlement contracts and do not impose an obligation to deliver commodities. Traders prefer to trade assets that are more convenient for them (currencies, RTS index, shares, etc.). The fundamental difference between settlement futures and delivery ones is that delivery of the commodity or underlying asset does not occur on the last day of the contract. On the expiration date, profits and losses are redistributed between the parties to the contract.

The conditions for concluding a futures contract are standard, they are approved by the exchange. In addition to this scheme, personal conditions (or specifications) are prescribed for each asset, which includes the name, ticker, type of contract, size/number of units, date and place of delivery, method, minimum price step and other nuances. More detailed specifications of any futures on the Forts market can be found on the Moscow Exchange website.

The difference between futures and options is that the former oblige the seller to sell an asset, and the buyer to purchase an asset in the future at a fixed price. The guarantor of the transaction in both cases is the exchange.

Today, exchange trading experts recognize that in many ways it is futures contracts that set the pace for economic development, setting the bar for supply and demand in the market in advance.

Hello, dear blog readers! Every day, well-known financial instruments, such as currency pairs or stocks, are becoming less and less attractive for private traders who work with relatively small capital. Of course, this puts investors in a difficult position. However, this does not mean that online trading has completely exhausted itself: to get back into the game again, it’s quite simple reconsider certain emphases and shift your focus to new ways of investing.

Derivatives trading, namely futures trading, deserves special attention. Actually, this is what we will talk about now.

What is a futures?

Futures is a contract concluded between two investors. The subject of the agreement is the delivery of the asset within a clearly established time frame and at a pre-agreed price. In such a trading operation, the exchange acts both as an intermediary and a regulator.

Let's try again to figure out what futures are, but now in simple words. Let us explain the essence of this derivative financial instrument using an example. Let's say you have 3 tons of grain, but this year a record harvest is expected, which will ultimately cause the value of this asset to decline. How to insure yourself against possible risks?

It is enough to conclude a futures contract by selling grain at a set price. Let’s imagine that at the time the agreement was signed, the price had not yet dropped. Thus, if the fears come true, the buyer of the asset will lose money, while you sell the grain at the highest possible price.

However, the proposed example is more theory, because private investors do not trade grain, they earn money through speculative trading operations. Futures trading is designed in such a way that each participant in the transaction will be able to transfer their obligations to third parties, which actually allows you to speculate without waiting for the actual delivery of the asset. Not to mention that there are special futures contracts that do not involve physical delivery of the asset.

Educational introductory videos

To reinforce the material, be sure to watch a series of videos that will introduce you to futures.

Classification of contracts

Futures are divided into two categories: delivery and settlement. Naturally, trading technology changes depending on the type of contract. Therefore, before you start trading, you need to carefully study the characteristic features both types.

Delivery

The essence delivery futures is clearly expressed in the very name of the derivative. It involves completing a transaction with the actual delivery of goods. Thus, at the end of the contract's maturity, the buyer must receive the asset at a predetermined price. Compliance with conditions controlled by the exchange, if the rules of the transaction are violated, a fine is imposed on the participant.

Settlement

Calculated futures is the radical opposite, because according to the terms of this contract actual delivery of the asset is not anticipated. Payments between participants are made exclusively in cash.

From all that has been said above, we can conclude that supply futures are used mainly by agricultural and industrial enterprises that are really interested in purchasing raw materials or finished goods at the best price. In its turn, settlement contracts are used by investors to make speculative transactions.

Key differences between futures and stocks

Promotion is a financial instrument presented in the form of a legally approved document. Participants in a transaction with this security are vested with certain obligations and rights. In its turn futures is a derivative, that is, a derivative instrument expressed in the form of a contract for the supply of an asset.

Thus, you can buy stock futures, index futures, oil futures, gold futures and other assets. The topic of stock trading for beginners and not only is covered in detail in the article “”.

Futures trading also differs from stock trading in that contracts have built-in leverage. This feature fully determines the fact that futures are perhaps the most liquid instrument. Below is a video that explains in detail how leverage works.

Trading platforms: CME and FORTS

Futures trading is predominantly carried out on the American and Russian markets, CME And FORTS respectively.

USA

Chicago Mercantile Exchange– one of the most famous trading platforms in the world. In 2013, CME absorbed the equally well-known exchanges NYMEX and CBOT. In the American market, investors buy futures for international assets, such as Brent oil and shares of well-known issuers.

To start working on the Chicago Stock Exchange, an investor needs to select a broker who would provide a similar service. The impressive size of the guarantee on futures is perhaps the stumbling block due to which Russian investors refuse to enter the American market. However, some brokers offer the most favorable trading conditions.

Open a brokerage account

Russia

As for the Russian market, the exchange is the uncontested leader here FORTS. The most liquid instruments of this trading platform are futures for Gazprom shares, for the RTS index, as well as for leading currency pairs. In the domestic market, trading futures for beginners usually means choosing shares of Gazprom or Sberbank. Of course, the RTS index is characterized by greater liquidity, but such trading is accompanied by additional difficulties, so if you do not have experience, it is better to start with something simpler.

Of course, to trade on the FORTS derivatives market you also need broker. The most favorable terms of cooperation are offered by the well-known company Zerich.

• Firstly, it's worth noting colossal experience– the company has been operating since 1995;
• Secondly, the minimum threshold for entering the Russian market is only 30,000 rubles;
• Thirdly, the company installs minimum commissions.

Anyone can familiarize themselves with the additional terms of cooperation by reading. This article examines in detail the history of the formation and development of the company, current offers for trading on financial markets, and also presents visual instructions upon registration of the deposit.

Below you can watch a portion of the webinar that explains the difference between CME and FORTS

A practical guide to futures trading

Actually, we have figured out the main theoretical features of futures trading. However, the training does not end there, because in order to earn a stable income, you need to have in your arsenal all the necessary Practical skills. Now we will try to fully answer the most common questions that arise from traders who are going to invest money in trading futures contracts.

Where can I find a complete list of futures?

Naturally, every trader begins his work by selecting financial assets that could later be included in his investment portfolio. The article "" describes in detail what it is, as well as what rules must be adhered to during the formation of this portfolio. However, where exactly can you find a list of futures contracts available for trading? The full list is posted on the official website of the exchange.

Let's consider the procedure for searching for an asset using the example of the Chicago Mercantile Exchange.

1. In order to find the required contract in the trading platform in the future, you first need to define ticker trading instrument. Suppose we need to find gold.
2. Opening CME Group exchange website
   
3. After this, you should open the section “ Trading»-« Products" Among the subsections that appear, select “”
   
4. In the column “” you will see a contract for gold, it is designated as follows “ GC Gold»
   
5. We open detailed information on gold futures. In particular, you need to find a link to the specification of this contract
   You will need this link more than once during trading. The fact is that such a table contains universal information on the contract, including the instrument ticker, in this case it is G.C..

If you don't understand any section of the table, use Google's machine translation:

If you are uncomfortable viewing information through the exchange, use the website rjobrien.com . On it you can look:

• contact specification ;
• list of symbols ;
• futures calendar and other useful information.

The principle of selecting futures by date. What is the difference?

The specification of each contract states futures expiration date. As soon as the contract is executed, the actual result of the trading operation is calculated, that is, the seller receives money and the buyer receives assets. In futures trading, transactions are closed on a centralized basis through expiration absolutely everyone open positions. Also, for some instruments you can see that several contracts for one asset are traded; naturally, the delivery time is also different.

The execution date is indicated by a letter and the year by a number.. The symbol system is unified, that is, it is used on absolutely all exchanges on which futures are traded. The expiration date varies depending on the underlying asset. For example, execution of index and currency futures occurs at the beginning of the third week of March, June, September or December. As a rule, this is the 20th or 21st.

How do investors select futures by date?

It all depends on the trading strategy used. Conventionally, contracts are divided into long-term, short-term And medium term. Depending on his own preferences, the trader gives preference to one or another type. Below you can watch a video that very briefly explains how to properly read futures specification at CME.

Which futures have the greatest investment attractiveness?

This topic has already been partially touched upon earlier using the example of the Russian derivatives market FORTS. However, the principle remains the same, even if we are talking about American trading platforms. Popular indices always have the greatest volatility and liquidity: RTS, Dow Jones, S&P and others. However, again, it is worth emphasizing that only experienced traders understand how to trade futures of this caliber.

Popular currency pairs are also not particularly inferior to indices in terms of liquidity and volatility, but at the same time they easier to understand. We are talking about assets such as EUR/USD, AUD/USD, GBP/USD, CHF/JPY. Basically, there is always a demand for currencies with the dollar. Naturally, the volatility of an asset directly depends on the current trading session. You can always go the easiest way and purchase futures on shares of a popular issuer. If in Russia " Blue chips» can be called Gazprom or Sberbank, but in the USA it is Google, Apple, Intel and other well-known corporations. Also a win-win option would be trading futures on precious metals, especially gold.

The video talks about the five most popular futures in the US.

How many futures can you buy for 1000/5000/10000 dollars without leverage?

To answer these questions, we need to look at a specific example. First, you need to understand how the cost of one futures contract is formed? On the first day of circulation of the instrument, the price is set by the trade organizer - the exchange. Subsequently, futures quotes change under the pressure of supply and demand.

Clearing– write-off, as well as accrual of VO ( variation margin) is carried out daily 5 times a week, except holidays and weekends. Therefore, profit and loss are also calculated daily, and not only during the period of sale of a trading instrument. At the moment of opening a trading operation, a certain amount of money is frozen in the investor's account; it will not be available as long as the investor is the holder of this contract.

On exchange websites you can find complex and confusing collateral tables, which are extremely difficult for a beginner to interpret. Therefore, it is better to use a helper site rjobrien , on which it is located pivot table margin collateral. Alternative source - tradeinvest website (futures specification , margin requirements ).

Example

As an example, we use the same gold futures, which is located in the section CMX. Look in the column " Spec Init", which displays the initial margin. Let this parameter be equal to 10,125$ . This means that to purchase and stable trade such a contract, an investor will need a deposit of at least $12,000-13,000.

The next column displays the parameters of the maintenance margin, in our case this is the amount 7,500$ . If the deposit contains less than the specified amount, the so-called Margin Call. Accordingly, you will either have to record losses or deposit additional funds.

Concerning commissions, then it all depends on the broker. By collaborating with companies that were proposed earlier, the investor will be able to save on commission costs.

How many futures can you buy for $1000/5000/10000 with leverage?

The amount of leverage depends on the trading conditions offered by the selected broker. Most often there are companies offering a ratio 1:14 And 1:17 .

To understand the calculation scheme, be sure to watch the following videos. It calculates the number of gold futures contracts.

Trading algorithm

1. We determine the current value of the futures contract;
2. We look at the size of the guarantee;
3. We divide the deposit amount by the size of the collateral and get the number of available contracts.

Now let's look at an example. Let's calculate the number of gold futures contracts that we can purchase with a deposit of $1000, $5000 and $10,000. Just a warning: The calculations made are approximate and may vary depending on various trading parameters.

• Current value of a troy ounce 1268$ ;
• Warranty 6233 rubles or 109$ ;
• Leverage 1:14 .

We count the number of contracts for different depot sizes. We divide the deposit amount by the amount of the guarantee.

Thus, we calculated the maximum limit that the deposit can withstand. When entering a trade it is important don't forget about risk management and the inverse of leverage. Let's say you have $5,000 in your account, and you can buy 45 contracts with it. Since you are a smart trader, you limit your risk to 3% when entering a position. In money terms this is $150. This way you work with 1 contract. Depending on the situation, the numbers may change, however, forget about money management you have no right.

1. For novice investors, it is best to start with the Russian derivatives market, using highly liquid trading instruments: RTS index, Gazprom shares, currency pairs EUR/USD, RUB/USD. Trading futures contracts on these assets is characterized by excellent returns.
2. To line up trading system, you must first undergo appropriate training. Investors mainly use mechanical strategies based on the work of indicators. You can also use candlestick analysis tools. To do this, I recommend that you read the article “”.
3. Before you start trading with real money, carefully hone your skills on a practice trading account. It is also advisable to select two markets at once in which the effectiveness of strategies could be tested.
4. Develop your own risk management system, in order to constantly monitor the size of the trading account and reduce the likelihood of a complete loss of the deposit.
5. Enter into a user agreement with one of the previously proposed brokers - Zerich or Just2Trade.

Video series for beginners and more

Watch the training webinar conducted by the director of the company's school of stock exchange skills Zerich. After watching it, you will learn how to trade futures through the trading terminal QUIK.

Another video explaining principle of making money from oil using futures.

Results

We looked at the key features of trading futures contracts. This is a truly profitable derivative financial instrument. Therefore, provided serious attitude towards trading, you can achieve a positive result in the shortest possible time.

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Various assets are traded on the Moscow Exchange: stocks, bonds, investment fund units, currencies, futures and options contracts. Moreover, all these assets are divided into corresponding markets. Stocks and bonds are traded on the stock market, currencies - on the foreign exchange market, futures and options contracts - on the futures market. Therefore, to say that futures (futures contracts) are traded on the stock market is fundamentally incorrect, since they are not represented there. It is correct to say that futures are traded on the Moscow Exchange. The derivatives market is characterized by high liquidity of futures contracts. Average daily turnover on it is in the range of 500 billion rubles. (at the same time, for shares and units on average - about 250 billion rubles).

Want to understand the issue better? In this article we will tell you in simple terms what futures are, how they differ from, for example, stocks and what rules are used to trade.

Rice. 1 Trading turnover in markets

What does the term "futures" mean?

To better understand the essence of futures, what it is and what it is for, you must first remember the definition of a forward contract. This is the name of a transaction between a seller and a buyer, under the terms of which the buyer is obliged to buy and the seller is obliged to sell a certain amount of a certain asset (the subject of forward and futures contracts is called “base”) at a pre-agreed price at a pre-determined date in the future. Moreover, the terms of the transaction, the quality and quantity of the asset are negotiated by the buyer and seller individually.

In turn, a futures contract is a standard exchange agreement for the purchase or sale of an underlying asset at a certain date in the future at a price agreed upon today, in quantity and on the terms established by the contract specification. That is, both forward and futures are contracts for deferred transactions, but futures are a standardized exchange contract. So, with a forward you can buy, for example, 101 barrels of Brent oil (if there is a seller who agrees to the terms of the deal), and with a future - 10 barrels. If you need 100 barrels, then you can conclude 10 contracts, but you cannot buy 101 barrels - the amount of the asset must correspond to the lot size of the futures contract.

Underlying assets of futures contracts

The derivatives market offers a range of underlying assets for which there are futures contracts. In turn, these assets are divided into groups: indices, stocks, bonds, currencies and commodity assets.

The group of index futures included: futures on, on and MICEX-mini, as well as a futures contract on the volatility of the Russian market.

Rice. 2. Index futures

The group of stock futures included contracts for shares of the following companies: Sberbank (JSC and AP), Gazprom, VTB, Lukoil, Rosneft, MMC Norilsk Nickel, RusHydro, FGC UES, Moscow Exchange , Surgutneftegaz (JSC and AP), Tatneft, Transneft, NLMK, Alrosa, Severstal, MTS, Rostelecom (JSC), Uralkali and Novatek.

Rice. 3. Stock futures

The group of futures for baskets included the following contracts: futures for two-year federal loan bonds, as well as four-year, six-year, ten-year and fifteen-year.

Rice. 4. Federal bond futures

The currency futures group includes contracts for the following currency pairs: US dollar/Russian ruble, Euro/Russian ruble, Euro/US dollar, US dollar/Japanese yen, Pound sterling/US dollar, Australian dollar/US dollar, US dollar/Swiss franc and US dollar/Canadian dollar.

Rice. 5. Currency futures

The group of commodity futures includes contracts for the following underlying assets: Brent oil, gold, silver, platinum and palladium.

Rice. 6. Commodity futures

The Moscow Exchange may supplement these lists with new futures or remove those that are not traded. But in practice, such changes happen quite rarely.

Specification

The main document that sets out the rules for trading a futures contract is the specification. For example, consider the specification of the futures contract for Gazprom shares. The specifications include:

· the name of the contract, in which the underlying asset is indicated in Latin letters;

· in numbers separated by a dot - the month and date of the immediate transaction;

· name of the contract;

· type of contract - futures (there are also option contracts on the derivatives market);

· type of contract - deliverable (this means that the buyer of this contract, upon its expiration, will make a real purchase transaction, and the seller will make a sale of the underlying asset, but there are also settlement futures - for which only the transfer of the financial difference occurs at the time the agreed transaction is concluded (deliverable are futures for stocks and bonds, all others are settlement));

· lot - the amount of the underlying asset (in this example - 100 shares);

· quotation - in rubles per lot;

· beginning of circulation - the date on which the futures contract began to exist;

last day of application;

· execution date - the date of fulfillment of obligations under the futures between the buyer and seller;

· price step - minimum futures price step;

· cost of a price step - the cost equivalent of a price step (in rubles);

· lower limit - the price below which orders will not be accepted by the system during this clearing;

· upper limit - the price above which orders will not be accepted by the system during this clearing;

· settlement price of the last clearing - the price at the time of clearing (from 14:00-14:05 and 18:45-19:00);

· commission fees for transactions with futures;

· collateral - the amount of money in rubles that must be reserved in order to complete a transaction with a futures contract;

· execution - the order of execution of the futures.

Rice. 7. Futures specification

Features of futures trading

Futures contracts almost completely repeat the dynamics of their underlying assets, but, accordingly, trading in futures begins no earlier than the start date of trading and ends after the last day of circulation. The most liquid contract is the one with the closest expiration date. To conclude a transaction with a futures contract, there is no need to pay its entire cost - it is enough to provide a guarantee security (GS), equal for both the buyer and the seller. Trading in futures contracts takes place from 10:00 to 23:50, and there are two clearings: intermediate (from 14:00 to 14:05) and main (from 18:45 to 19:00). It is considered that in the derivatives market the trading day runs from 19:00 to 19:00 the next day, since in the main clearing there is a daily transfer of funds between the buyer and seller depending on changes in the value of the futures. If the futures price has increased, then at 19:00 the difference is transferred from the seller to the buyer, but if it has decreased, then from the buyer to the seller. This is the most important difference between a futures and the underlying asset, since in shares the counterparties receive money only at the time the transaction is closed.

Conclusion

Futures contracts open up a lot of opportunities for a trader. Among them are the free effect (on average 5-12 leverage depending on the asset), low commissions compared to the stock market, the presence of an evening session (from 19:00 to 23:50), as well as the possibility of implementing non-linear arbitrage and hedging strategies. These are the main features of futures that anyone who wants to master trading in the derivatives market should know.