MAS (Licence No. CMS101371)
 Futures Price
The futures price is the price of a futures contract, which is an agreement to buy or sell an underlying asset at a predetermined price and date in the future.
The futures price depends on several factors, such as the spot price (the current market price) of the underlying asset, the interest rate, the storage cost, the dividend or interest income, and the convenience yield of the asset. The futures price also reflects the market expectations and sentiments about the future price direction of the asset.
Factors | Price Rise | Price Fall |
|---|---|---|
Seasonal Factors | Seasonal changes lead to a decrease in the supply or an increase in the demand of the asset | Seasonal changes lead to an increase in supply or a decrease in demand of the asset |
Technological Factors | When technological progress leads to an increase in consumer demand or added value of the asset | Technological progress leads to improvements in production efficiency or quality of the asset |
Psychological Factors | Market participants are optimistic or bullish about the underlying market | Participants have a pessimistic or bearish attitude towards the underlying market |
Social Factors | The public has a high degree of recognition or demand for the asset | The public has low recognition or demand for the asset |
Political Factors | Favorable events such as peace, cooperation, stability, and openness occur | Adverse events such as war, conflict, turmoil, and sanctions occur |
Government Policy | The government adopts stimulus or supportive policies | Government adopts repressive or restrictive policies |
Economic cycle | The economy is in an expansion or boom phase | The economy is in a recession or depression phase |
Market Supply and Demand | Supply decreases or demand increases | Demand decreases or supply increases |
Futures Commission
At DA Financial Service (S) Pte. Ltd. , we are committed to delivering the best pricing to all investors.
Unmatched commissions, every Trade!
Brokers | Commission | Additional Requirement |
|---|---|---|
 DA Financial | Only $0.23 | None |
TD Ameritrade | $2.25 | None |
E-Trade | $1.50 | None |
Interactive Brokers | $0.25 | None |
NinjiaTrader | $0.25 | $99/month fee |
* apply to CME micro e-mini contracts
* commission and fee data as of August 18, 2023
Futures Trading
Futures trading can be a rewarding way of investing in various markets if done properly. However, it also involves risks and challenges that require careful preparation and discipline.The steps of trading futures are as follows:
Step 1
Understand and prepare for the risks. Futures trading involves leverage, which means you can control a large amount of money with a small initial investment. However, leverage also magnifies your potential losses if the market moves against you. Therefore, you should have a clear trading plan that includes your profit objective, exit strategy, and risk management rules
Precautions for Futures Trading
01
High Volatility
Futures trading is a high-risk investment because of high volatility. This is a misunderstanding of risk. High volatility does not equal high risk. A high probability of loss is high risk. Often at the bottom and top of the market, volatility is particularly high. The level of risk depends on the price at which investors enter the market.
02
Leverage
Futures trading is a high-risk investment because of leverage. This is also a misunderstanding of risk. High probability of loss is high risk. Leverage only magnifies profits and losses, and does not change the probability of profit/loss. If you feel that leverage is high, just deposit more cash.
03
Time
Futures trading is only suitable for short-term, not for long-term holding. Futures have many short-term trading strategies, as well as many long-term trading strategies. Therefore, the length of futures holding can be calculated by seconds, or by months.
Futures and Options
Comparison
Futures and options can both be used to hedge the risk of price fluctuations or to engage in speculative trading. But they also have many differences:
Futures | Options |
|---|---|
The profit and loss of futures contracts are symmetrical, that is, the profit and loss of the buyer and seller are opposite, and both are unlimited. | The profit and loss of options contracts are asymmetrical, that is, the profit and loss of the buyer and seller are not equal, and both are limited. |
Futures contracts must be delivered at maturity, and the profit or loss at delivery depends on the difference between the contract price and the market price. | Options contracts can choose whether to deliver or not at maturity, and the profit or loss at delivery depends on the difference between the exercise price and the market price. |
Futures contracts require daily settlement of margin, and if the margin is not enough, additional margin must be added or the position will be forcibly closed. | Buying options contracts only requires the buyer to pay a one-time premium, and there is no need to add margin or face forced liquidation. |
Futures are contracts that must be fulfilled, in which the buyer and seller agree to trade an asset at a fixed price in the future. | Options are contracts that can be chosen to be fulfilled or not, in which the buyer has the right to buy or sell an asset at a certain price in the future. |
App Features
Making Your Investment Easier Anytime, Anywhere
Make Futures Investing Accessible for All
Global Markets Access
Connects the most liquidate futures markets right from the palm of your hand. Manage your positions at your fingertips in one account.
Smart Charting
Leverage our intuitive, cutting-edge charting tools for a seamless transaction experience on-the-go.
Rapid & Easy Order Entry
Simplify your trading process with our rapid order entry feature and submit order with speed and precision.
FAQ
Special statement: 1. The above activity discounts are subject to the terms and conditions. If there is any dispute, Direct International reserves the right to interpret and make the final decision on this activity. DA Financial reserves the right to change the terms and conditions of the offer, change or terminate any offer within the scope of legal requirements without prior notice. 2. This promotion and corresponding advertisements do not constitute an offer, solicitation, suggestion, opinion or any guarantee for any securities, financial products or instruments. Please read the relevant risk disclosure before investing. 3. Zhida International has the right to interpret and make the final decision on this event. For more questions, please follow the official WeChat official account or call the Zhida International customer service hotline 00852-3919 9110 or 400-119-8833. 4. If there is any violation of regulations and malicious behavior to obtain rewards, Zhida International has the right to withdraw or not issue relevant rewards.
Disclaimer: 1. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and consult professional investment advisors when necessary. 2. Investment involves risks, and futures prices may rise or fall. The risk of loss in trading futures can be extremely high. In certain circumstances, you may suffer losses in excess of the amount of margin initially deposited. You may be required to deposit additional margin at short notice. If the required amount is not provided within the specified time, your open position may be liquidated. However, you are still responsible for any resulting shortfall in your account. Therefore, you should study and understand futures contracts before trading, and carefully consider whether such trading is suitable for you based on your own investment experience, financial situation and investment objectives. You should also seek independent investment advice first. 3. Within the scope permitted by law, Direct International reserves the right to change these terms and conditions/or change and terminate any offers. For other questions, please contact customer service.
Risk warning: 1. Investment is risky, so be cautious when trading! 2. When engaging in securities investment or futures trading, please proceed through a legal securities and futures operating institution.