What are Futures Contracts?
Futures Contracts are a type of exchange traded derivative security that obligates buyers to purchase, or sellers to sell, an asset at a predetermined future date and price. They have standardised details, such as price, quantity and delivery date, which enables them to be traded on futures exchanges. Most futures contracts are settled in cash. Gleneagle Securities offers Futures trading through the SaxoTrader platform. Futures Contracts can be used either to hedge or to speculate on the price movement of the underlying asset. Additionally, they only require an initial margin to enter into and can be leveraged to gain greater exposure to price movements.