What the hell is an 'overseas gift'?
Overseas Futures: Futures/options traded on overseas futures exchanges. In order for domestic investors to trade overseas futures, they can invest through a financial investment company that is licensed for on-exchange derivatives business.
If you read the dictionary definition above, there are many people who find it difficult to understand. First of all, in order to understand overseas futures accurately, you need to know about 'futures' and 'derivatives'. Let's take a look at the types of futures and derivatives in the order below. If you start without even knowing the basic concepts for futures investment, you will never be able to make successful investments. Be sure to take the time to read the concepts below, even lightly.
what is a gift
Derivatives : Derivatives are securities that bring new cash flow usingtraditional financial products such as stocks and bonds at a certain price at a certain time to reduce the risk from market fluctuations such as exchange rates, interest rates, and stocks.says Among these derivatives, forward contracts, futures and options are included.
Futures : Based on the above concept of derivatives, it can be seen that futures are a type of derivatives. A futures contract is a legally binding transaction that allows you to buy or sell an asset at a specific price in the future.
Understanding 'futures trading' through examples
Shall we listen to the example of 'trading in cabbage fields' , which is the most representative example of futures trading ? Imagine that you are the farmer's boss who makes a living by farming the cabbage field ! In the case of agricultural products, it will be greatly affected by the weather, right? As a result, when the weather is good, the harvest is good, but when the weather is bad, the harvest is not good, resulting in inconsistent profits.
Example of futures trading 'Planning cabbage field'
What would you like to do? Of course, you want to have a stable income. Another person appears here. This is the owner of a mart who buys cabbage from the farming boss and sells cabbage to consumers .
In the case of the owner of a mart, the price of cabbage suddenly rises and he is worried about buying cabbage at an expensive price, right? The mart owner also wants to buy cabbage at a regular price. Here , trades are made to lower future risks with each other, which is called 'futures trading' . Because trades are made to lower future risks to each other!
Futures Trading - Example 2
Because we trade through cabbages, we call these cabbages 'underlying assets' . The current price of cabbage is 3,000 won. I'm going to predict the price after 3 months and decide to trade. Nobody knows what the price of cabbage will be in 3 months, right? At this time, the owner of the mart offered to buy the cabbage for 5,000 won in three months. The cabbage boss accepted the trade offer because he thought it would be better to sell it at 5,000 won rather than 3,000 won now. Since the deal was concluded, the two people who fell or climbed the cabbage field must sell the cabbage at 5,000 won unconditionally. This is what 'futures trading' is all about. Did you set the underlying asset (cabbage) at the future price of 5,000 won after 3 months, not the current price?
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After 3 months, two cases occur. This is when the price of the underlying asset (cabbage) rises above 5,000 won or falls below 5,000 won.
If the price of cabbage rises to 10,000 won : who benefits? The mart owner who decided to buy cabbage for 5,000 won is in profit. If you did not sign a 'futures transaction' at 5,000 won, you had to pay 10,000 won for each head of cabbage, which has doubled. On the contrary, the cabbage boss will see a loss. This is because cabbages that could have been sold for 10,000 won must be sold at 5,000 won cheaper. Let's consider the opposite case.
If the price of cabbage drops to 1,000 won : who benefits? This time, the cabbage boss is the profit. If we hadn't entered into a 'futures transaction' at 5,000 won, we would have had to sell each head of cabbage at 4,000 won or cheaper. Selling your stuff cheap is obviously a loss, right? Instead, the owner of the mart buys cabbage for 4,000 won more than he could have bought for 1,000 won, so he suffers a loss.
Here comes the characteristics of 'futures trading' . It's a 'zero sum game' . It's a structure that someone has no choice but to see the loss in the end. I took cabbage as an example, but this is why it is said that futures investment is very risky because actual financial products move much larger amounts of money.
Overseas gift features
The advantage of overseas gifts is the variety of products. You can invest in various stocks such as currency (foreign currency), metals, energy, agricultural products, minerals, oil, click here etc., such as the diversity of indices, the well-known NASDAQ index, S&P 500 index, and Dow index.
No separate deposit is required. 해선 can trade overseas futures even with margin. However, due to the nature of futures with high volatility, margin rates vary between products and exchanges, ranging from 2% to 15%. In the case of domestic securities companies, the margin required for futures trading is high, and due to the problem of reverse trading due to the fluctuation rate, investors often invest using rental account companies when making overseas futures.
24 hour trading is available. In the case of the futures exchange, HTS and MTS both allow 24-hour investment, so investors can access the market anytime, anywhere.
Two-way trading: In the case of stocks, it is a form of trading in which only one side can be bought or sold. In the case of futures trading, you can also make profits by trading in the form of selling first and then closing with a buy when the price drops. It can be a bit confusing at first, but it's easy to understand if you think of it as similar to short selling and investing in falling prices.
Derivatives are financial instruments whose
value is determined by changes in the value of underlying financial assets such as currencies, bonds, and stocks. Depending on the classification, itis divided into forward contracts , futures , options , and swaps . Among them, futures trading refers to a contract to buy or sell an underlying financial asset at a specific price at a specific time in the future.[1]
For example, A is a seller with goods and B is a consumer with cash. When A looks 3 months from now, the price of goods is likely to rise more than now, and when B looks 3 months from now, the price of goods is likely to fall more than now. So, A and B do not do spot trading right now, but enter into a futures contract 3 months from now. (In fact, no one knows the actual price after 3 months.)
Eventually , the transaction is completed while the other side loses money. (Here, the underlying asset is a commodity, and the seller and consumer predict the future price based on the current price of the underlying asset.) must have characteristics.
Current spot transaction price: Predict future prices based on this price.
Uncertainty: No one really knows the future price. If it can be accurately predicted, no transaction will take place.
Obligation to trade upon conclusion of a trade: Once a futures contract has been entered into, the trade cannot be undone.
Although not mentioned in the example above, futures trading always requires a minimum margin. And it must be done through a standardized exchange. (Contracts made without an exchange are called forward contracts .)
3. Interest rate futures market해외선물
In interest rate futures, the underlying asset is interest rates. It is a contract to buy and sell at an interest rate.
Interest rate futures are the largest of all futures markets in the world ( because they are used for hedging
). On the Chicago Mercantile Exchange in the United States, interest rate futures account for 73% of all futures trading, and in Germany, 44 account for %[5]