More on Futures trading
Futures are contractual agreements to buy or sell a specific commodity or financial instrument on a price and future date that is pre-determined.
A variety of assets can make up a Futures contract, from traditional commodities such as corn, wheat, and orange juice to a range of asset classes, including energies, government bonds, interest rates and stock indices.
Futures contracts detail the quality and quantity of each underlying asset, and are standardised to enable trading on Futures exchanges.
Futures are highly liquid, enabling trading on tight spreads. Futures transaction costs are low, and the level of specificity in Futures contracts and the regulations imposed by various exchanges mean that Futures pricing is transparent. Saxo Bank Dubai offers online Futures trading with no physical delivery required.
Volume-based commissions
Online Futures trading occurs on volume-based commissions, where greater trading values lead to less costs incurred. Prices for large monthly Futures trading volumes can drop as low as USD 0.30 per Futures contract.