With futures trading maturing over the decentralised forward trading of commodities, this form of fair market practice progressed well into the seventh decade of the last century, when the futures industry moved into developing financial futures products as a way to offset investment risks for economic portfolio. Today, futures markets have become so popular and an essential market vehicle for a product as long as the underlying contract has sufficient volume to satisfy supply and demand in the open markets, and to generate price fluctuations. As the prices of the futures market follow the benchmark of the underlying (known as ?spot? or ?cash?) products, there must be underlying instrument to every futures product to induce the fluctuations of price movements based on the variables of investor?s sentiments, supply and demand factors etc. In futures trading, ?basis point? refers to the difference of futures prices less spot price. Futures trading has an inherent high risk factor or high leverage of low capitalisation that relies on smart fund management to ride out projected prices in the market. read more

Technorati Tags: futures, trading, market, markets, price, risk, investor seminar news