Before you begin to tell you how to invest in the futures market, I’m going to briefly explain the main features of this type of investment. That is a future? A future contract is a contract of sale, postponed in time, where is today pacta price, the product and the date on which the transaction will take place. In the future contract both parties, buyer and seller, assume an obligation. The buyer has the obligation to buy (receive) a particular asset (underlying asset) in exchange for the payment of a price has been agreed (in the future) at an agreed future date (due date). The seller has the obligation to sell (deliver) a particular asset (underlying asset) in exchange for the payment of a price has been agreed (for the future) at an agreed future date (due date). To understand this better, let’s see an example. Suppose you are the maximum representative of a company dedicated to the manufacture of automobiles.
A good day is presented in his Office a client interested in the purchase of 100 cars of a particular model. To this day, each car costs 9.015 euros. However, the client does not want the cars today, but within a year. His client estimated that within a year the price of each car shall be above 10.818. On the other hand, you don’t believe that the price of each car will be place above 10.217 euros. To ensure a good price, both buying and selling, you reached an agreement with his client by which you agree to sell 100 cars at a price of 10.518 euros within one year, while its customer agrees to buy 100 cars at that same price of 10.518 euros in the same period of time (one year). You just made you is sell a contract for the future, while his client what he has done is buy a future contract.