{"id":405,"date":"2022-07-22T17:43:22","date_gmt":"2022-07-22T17:43:22","guid":{"rendered":"https:\/\/www.tigahoo.com\/?p=405"},"modified":"2022-07-22T17:43:23","modified_gmt":"2022-07-22T17:43:23","slug":"the-ultimate-guide-to-futures-trading-in-singapore","status":"publish","type":"post","link":"https:\/\/www.tigahoo.com\/the-ultimate-guide-to-futures-trading-in-singapore\/","title":{"rendered":"The ultimate guide to futures trading in Singapore"},"content":{"rendered":"\n
A futures contract is a binding agreement between two parties to buy or sell an asset at a price on a specific date in the future. The asset could be stocks, bonds, currencies, commodities or derivatives.<\/p>\n\n\n\n
Futures contracts were initially created to help farmers stabilize prices for their crops. They would sell a futures contract for their crop at a fixed price so that if the price of their crop dropped by the time they harvested it, they would still receive the agreed price.<\/p>\n\n\n\n
When buying a futures<\/a> contract, you agree to purchase the underlying asset at a set price on a specific date in the future.<\/p>\n\n\n\n For example, if you buy a crude oil futures contract, you agree to purchase 1,000 barrels of crude oil at the fixed price on the delivery date.<\/p>\n\n\n\n If you sell a futures contract, you agree to sell the underlying asset at a set price on a specific date in the future.<\/p>\n\n\n\n The delivery date is when the contract expires, and the underlying asset must be delivered.<\/p>\n\n\n\n There are several advantages of trading futures contracts.<\/p>\n\n\n\n As mentioned earlier, one of the original purposes of futures contracts was to provide price stability. By buying\/selling a futures contract, you are locking in a price for the underlying asset, which can help protect you from price volatility.<\/p>\n\n\n\n Futures contracts are highly liquid and can be easily traded, making them ideal for hedging or speculating on movements in the market.<\/p>\n\n\n\nAdvantages of trading futures contracts<\/strong><\/h2>\n\n\n\n
Price stability<\/strong><\/h3>\n\n\n\n
Liquidity<\/strong><\/h3>\n\n\n\n
Leverage<\/strong><\/h3>\n\n\n\n