what exactly are futures?

[snitcher]

Hello guys and girls.
i am a total newbie in the futures field.

i was reading their terms and conditions at Risk Disclosure Notice IG Markets

Transactions in futures involve the obligation to make, or to take delivery of the underlying asset of the contract at a future date, or in some cases to settle your position with cash. They carry a high degree of risk. The "gearing" or "leverage" often obtainable in futures trading means that a small deposit or down payment can lead to large losses as well as gains. It also means that a relatively small market movement can lead to a proportionately much larger movement in the value of your investment, and this can work against you as well as for you.

does that mean if i buy a brent oil i take full ownership and i have to pay the full price?

 

[N Rothschild]

only if you hold it untill it expires. you just sell the contract before it expires

 

[TheBramble]

i am a total newbie in the futures field.

i was reading their terms and conditions [...]

does that mean if i buy a brent oil i take full ownership and i have to pay the full price?

Yes.

I can arrange transport and storage for a small fee.

 

[snitcher]

ok so what if i do not want that asset and only want the profit(or loss)?

 

[TheBramble]

If you want the profit I can similalry arrange for transport and (very temporary) storage in a 3rd party country exempt from any taxation agreements with your own domicile nation.

Alternatively, take physical delivery and I may be able to put you in touch with someone, for a small fee, who could take it off your hands - providing certain quid pro quo of counter-party produtcs and services could be nominally exchanged for face value equivalent to and as agreed upon with your goodself.

The loss is an option - if you tick the 'no losses' box when you place the order it will overide the default setting which is 'liable for losses'.

hth

 

[Igat]

ok so what if i do not want that asset and only want the profit(or loss)?

Exit your position before expiry of the contract.

Simples.

 

[Igat]

If you want the profit I can similalry arrange for transport and (very temporary) storage in a 3rd party country exempt from any taxation agreements with your own domicile nation.

Alternatively, take physical delivery and I may be able to put you in touch with someone, for a small fee, who could take it off your hands - providing certain quid pro quo of counter-party produtcs and services could be nominally exchanged for face value equivalent to and as agreed upon with your goodself.

The loss is an option - if you tick the 'no losses' box when you place the order it will overide the default setting which is 'liable for losses'.

hth

He He

 

[N Rothschild]

If you want the profit I can similalry arrange for transport and (very temporary) storage in a 3rd party country exempt from any taxation agreements with your own domicile nation.

Alternatively, take physical delivery and I may be able to put you in touch with someone, for a small fee, who could take it off your hands - providing certain quid pro quo of counter-party produtcs and services could be nominally exchanged for face value equivalent to and as agreed upon with your goodself.

The loss is an option - if you tick the 'no losses' box when you place the order it will overide the default setting which is 'liable for losses'.

hth

very helpful

 

[snitcher]

If you want the profit I can similalry arrange for transport and (very temporary) storage in a 3rd party country exempt from any taxation agreements with your own domicile nation.

Alternatively, take physical delivery and I may be able to put you in touch with someone, for a small fee, who could take it off your hands - providing certain quid pro quo of counter-party produtcs and services could be nominally exchanged for face value equivalent to and as agreed upon with your goodself.

The loss is an option - if you tick the 'no losses' box when you place the order it will overide the default setting which is 'liable for losses'.

hth

lol

 

[snitcher]

i have been demo trading on the ig markets platform, with regards to expiry date, is it the first day of a mentioned month or the last day

 

[TheBramble]

snitcher, I took your OP as a windup, but am now considering you may be serious.

You're planning on trading futures which you freely admit you know nothing about with a spreadbet company?

 

[rawrschach]

IG markets is a CFD platform IIRC, your positions will automatically be rolled over and you dont have to deal with expiry etc.

 

[Adamus]

actually what is the definitive guide to trading these days? it used to be Jack Schwager's Technical Analysis of the Futures Markets, but there's probably something more up-to-date these days.

 

[snitcher]

snitcher, I took your OP as a windup, but am now considering you may be serious.

You're planning on trading futures which you freely admit you know nothing about with a spreadbet company?

yes

 

[TheBramble]

yes

Why?

 

[foreverstudent]

Free Trading Videos vLOG >> Home

 

[snitcher]

Why?

i want to give it a try. oil seems to be a good bet for future trading.