EXPERTISE

Futures

What are Commodity Futures?

A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Assets such as crude oil, precious metals, grains, currencies, stock indexes, and others are widely traded as Futures contracts.

Why should you trade Commodity Futures with Southesk Gottman?

• Futures contracts are leveraged. Investors can trade large contracts at just a fraction of the cost, making it a cost-efficient instrument;
• Profits can be gained despite the direction of the market moves;
• Trading opportunities in both rising and falling markets;
• Excellent liquidity for popular Futures contracts;
• Flexible tools for hedging your investment portfolio;
• Top global opportunities with a large spectrum of products.

Interest Rate Futures

Interest rates futures allow you to hedge your interest rate risks and potentially lower your borrowing and financing costs. By locking in interest rates at a fixed rate, you can secure your assets and liabilities from the effects of fluctuations. Interest rate futures give you the chance to benefit from the accuracy of your market views related to global interest rates and pricing.

Precious Metals Futures Trading

Futures contracts with precious metals as underlying assets are known as precious metals futures. Since commodities are becoming more common as an alternative asset, you can now invest in precious metals futures to diversify your portfolio, hedge against inflation, and gain returns.

Stock Index Futures

Stock Index Futures, which reflect the performance of the underlying stock market, represent a versatile and accessible alternative to stock investments. They can be used as a hedging and trading strategy to help you protect yourself against, or benefit from stock market volatility.

Commodity Futures

Commodity futures are contracts in which the underlying assets are natural resources. Commodities are becoming more common as an alternative asset, and you can now invest in commodity futures to diversify your portfolio, hedge against inflation, and gain returns.

• Precious Metals – Gold, Silver, Platinum, Palladium;
• Base Metals – Copper, Aluminium, Lead, Nickel, Tin;
• Agriculture – Soybeans, Rubber, Crude Palm Oil, Corn, Wheat, Sugar;
• Energy – Light Sweet Crude, Brent Crude, Natural Gas, Gasoline, Heating Oil.

Currency Futures

Currency futures, as an alternative to Spot Forex, allow you to control the risks associated with currency rate volatility while also taking advantage of the opportunities offered by these changes.

What is Forex?

The Foreign Exchange market is commonly known as Forex (FX). It is the largest financial market in the world due to outstanding daily trading volumes. When trading Forex, one is buying or selling one currency for another on the over-the-counter (OTC) market at an agreed exchange rate.

Why should you trade Forex with Southesk Gottman?

• This is a highly liquid market;
• Gain interest by benefiting from the interest rate differential between the two currencies in a currency pair;
• Forex trading is leveraged, allowing you to trade large values at just a fraction of the cost;
• Profits are multiplied when the market moves in your favor;
• For currency and precious metals pairs, trading opportunities are available in both uptrends and downtrends;
• As Forex trading involves leverage, it implies risks and rewards. While you can trade larger values at a fraction and potentially make greater profits when the market moves in your favor, effective Forex risk management is crucial.

Forex Currency Pairs

Being a reliable Forex broker with a large product offering, we have over 35 currency pairs to fit your trading needs.

What is FX Invest?

You can now manage your currency portfolio with FX Invest. With FX Invest, you can efficiently build and monitor your multi-currency portfolio when trading a wide range of global asset classes on our trading platforms. You can also benefit from the conversion of currencies from any place.

FX Invest gives you the ability to exchange currencies quickly and easily. Your funds can be withdrawn through overseas bank transfer or a check can be issued to you after conversion.

Why FX Invest?

• Competitive real-time rates: To manage your currency conversion, take advantage of favorable exchange rates.
• Convenience and choice: Manage your foreign currency investments online, having the possibility to choose from a diverse array of currency pairs.

Non-deliverable Forwards (NDFs)

Net cash-settled forwards on thinly traded or regulated currencies are known as non-deliverable forwards (NDFs). The difference between the contracted NDF price and the actual spot price is settled at maturity. There is no physical distribution involved.

Why should you trade NDFs with Southesk Gottman?

• Gain access to interest yields in countries without freely convertible currencies;
• Hedging tool for restricted currencies;
• NDF trading is leveraged, enabling you to trade large values at just a fraction of the cost;
• No physical delivery is required.

What are OTC Derivatives?

There are derivative contracts that are traded off-exchange, or over-the-counter (OTC) but are cleared and executed by a Central Counterparty, such as an Exchange or Clearinghouse. Some of the examples of OTC derivative contracts that are widely traded are:

• Bulk Commodities - Iron Ore and Coal;
• Energy - Fuel Oil, Gas Oil and Naphtha;
• Freight - Forward Freight Agreements (FFAs).

Benefits of Clearing

As a third party, the Central Counterparty undertakes all contractual rights and obligations. The standardization of contracts provides greater confidence and accessibility. With the Central Counterparty operating as both buyer and seller, transparency is maintained and this helps to reduce buyer/seller credit risk. Price transparency is also ensured as positions are marked to market and cash-settled against settlement prices determined by the Central Counterparty. In a broader market, better price opportunities can be expected.

Why should you trade OTC Derivatives with Southesk Gottman?

• Multi-exchange clearing memberships;
• Access to electronic trading to complement OTC clearing;
• Intraday risk monitoring.