Current location - Trademark Inquiry Complete Network - Futures platform - What are futures, options and swaps?
What are futures, options and swaps?
Futures are relative to spot. Futures are the subject matter that is bought and sold now, but will be settled or delivered in the future. This subject matter can be gold, crude oil, agricultural products, financial instruments, financial indicators and other commodities. The delivery date of futures can be one week later, one month later, three months later or even one year later. A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures. Improper speculation on futures, such as short selling stocks, will lead to financial market turmoil.

Option (option; Option contract, also known as option, is a derivative financial instrument based on futures. In essence, the option is to price the rights and obligations in the financial field separately, so that the transferee of the right can exercise his rights on whether to trade or not within a specified time, and the obligor must perform it. In the transaction of options, the party who buys options is called the buyer, and the party who sells options is called the seller. The buyer is the transferee of the right, and the seller is the obligor who must fulfill the buyer's right.

Swap swap refers to buying spot foreign exchange in the foreign exchange market and selling forward foreign exchange in the same currency at the same time, or selling spot foreign exchange and buying forward foreign exchange in the same currency at the same time, that is to say, combining a spot and a forward business in the same transaction.