Chicago Board Option Exchange

In the market are as important to sell buy or trade, but even more so is to ensure that these processes can be carried out in the future. Over the past few decades in tandem with the stock market and foreign exchange market has been developing ever gets a boost thanks to the long-term benefits it offers, we are talking about the futures market. The futures market makes its appearance in 1973 which created the Chicago Board Option Exchange, which was the first official stock futures, from where its major expansion into Europe was manifested in the appearance of another futures market in London in the year 1978. It should be emphasized that the use of futures market had been using for agricultural workers since feudal times, of course, that the futures market at that time had grounds different from now. The futures market is the possibility of commercial events of any kind, through a prior contract offers an opportunity to be valid at a future date, where profitability is higher than today. One of the great benefits of the futures market is the establishment of a previous contract worth encouraging the parties stipulated, since the real value of the unit may decrease or increase, the execution of this contract confirms that the sale of this value will be provided for the price and regardless of the variation in economic factors. The futures market mainly sells products such as raw materials, precious metals, and whether different merchandise primarily agricultural products.

Because they are affected by these environmental variables may vary its output must be the establishment of a futures contract that neither party loses in the process. An important part in the futures market is the clearing house, it is the responsibility to regulate the compliance of terms and economic determinations set forth above, also serves as an adviser, and whose function is the analysis of risk and probability of increase or decrease in assets, all this in order that the contract has a very low possibility of being a loss to both parties, however this analysis provides a large percentage of likely future earnings. Another important part of the clearinghouse is to provide a regular reporting system, which allows the parties to know factors such as: Change in prices. Loss or gain as the massive movement of assets. Results in the future. Monitoring both to ensure compliance with the contract properly. Offers the possibility of a security deposit to cover the risks if the contract is not fulfilled. In conclusion, the futures market is an excellent choice for all those people who wish or have an expansion plan since the establishment of a futures contract promotes interest rates and ensures a return to profitability without the risk of inflation.