Finanssifutuurit

Finanssifutuurit are financial derivative contracts that obligate the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and a predetermined price. These underlying assets can vary widely and include commodities, currencies, interest rates, and stock market indexes. The primary purpose of using futures contracts is often for hedging or speculation.

Hedging involves using futures to reduce the risk associated with potential price fluctuations of an asset. For example, a farmer might sell futures contracts for their crops to lock in a price and protect against a drop in market value before harvest. Similarly, an airline might buy fuel futures to secure a price for jet fuel, mitigating the risk of rising oil prices.

Speculation, on the other hand, involves taking on risk in the hope of profiting from price movements. Traders who believe an asset's price will rise may buy futures contracts, while those who anticipate a price decline might sell them. Futures contracts are traded on exchanges, which standardize the contracts and provide a regulated marketplace for buyers and sellers.

The value of a futures contract is derived from the value of its underlying asset. Leverage is a key characteristic of futures trading, as traders can control a large amount of an underlying asset with a relatively small amount of capital. This leverage magnifies both potential profits and losses. Margin accounts are used to facilitate this, requiring traders to deposit a portion of the contract's value. If the market moves against a trader's position, they may face a margin call, requiring them to deposit additional funds.