Financial Futures

Commodities futures market


Even for the experts, the commodities futures market has always been a gamble. But now there are futures contracts for people who don't know beans about soybeans. The so-called commodities in this case are good old stocks and bonds, and they are trade in the fast and furious financial futures market.


The financial futures include contracts in treasury bills, bonds and notes, bank certificate of deposit and a variety of other interest -bearing securities. When you buy one of those contract,you are betting that, for example, interest rates will go down in the future and thus the prices of the bills, bonds or notes covered by the contract will go up.


You can buy financial futures trough commodity firms or through brokers who specialize in commodities at large stock brokerage houses. But if you are a would-be buccaneer in the financial futures market, take a tip from the experts and do your trading on paper for a while, until you get your sea legs. If and when you are ready to start wheeling and dealing for real, then pick active markets, such as those trading in Treasury bill and Treasury bond futures. The more trading that is going on, the more likely you are to find a buyer or a seller for your contract at a price you want. And to close out your position when the price reaches a certain level and they can help you limit any losses.


But anyway you play it, futures is a highly leveraged business. So this kind of investment--while increasingly popular-- is not for those who aren't prepare to take substantial risks.