Financial Futures
Financial futures refer to standardized futures contracts with force of constraint for buying or selling certain financial instruments, which are the trade object, in the financial market at an agreed time and price. Financial futures are generally divided into three categories: currency futures, interest rate futures and index futures. Financial futures, as a type of futures, possesses the general characteristics of futures. But compared with commodity futures, the contractual objects of financial futures are not physical commodities, but traditional financial commodities, such as securities, currencies, and interest rates. Financial futures originated in the US market in the 1970s. Now, financial futures have been more developed than commodity futures in many aspects, and it accounts for 80% of the total futures market trading volume, thus becoming a successful example of Western financial innovation.
Commodity Futures
Commodity futures is a longer-term investment product. It has become very popular among individual investors to trade commodity futures in recent years. For shorter-term investments, financial derivatives trading and contract trading at the exchanges are simpler trading method with lower threshold, which allow you to seize opportunities in price fluctuations with less capital investment.
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Foreign Exchange
Foreign exchange futures are standardized contract transactions wherein both the parties involved therein agree to exchange one currency into another at a certain time in the future at the ratio currently agreed. It is a futures contract which uses the exchange rate as the trade object to avoid exchange rate risk. It is the earliest type of financial futures. Since the first foreign exchange futures contract conducted by Chicago Mercantile Exchange's International Currency Market Division in May 1972, foreign exchange futures trading has developed rapidly with the development of international trade and the acceleration of the world economic integration process.