We offer a very wide range of futures to choose from. However, when you open an account with us, you cannot invest in futures directly. This is because you will need an Active or Trader profile, which involves additional appropriateness tests and conditions. This is because of the relatively high risk and complexity, making futures unsuitable for novice or inexperienced investors. Once you have a complete understanding of how futures work, you can start trading futures. A good place to start is watching the video on the left.
When you are ready to buy your first future, you must pay a deposit (the initial margin) to be able to enter the position. This required margin is a percentage of the contract value. On our investment platform, you will find the name of the product and the corresponding risk category. This risk category indicates how much initial margin must be paid to conclude the contract.
Futures are standardised contracts that, like options, are made between two parties at a fixed price and expiry date. It is a contract to deliver an underlying product at an agreed time in the future at an agreed price.
Unlike other financial products such as stocks, with futures, you do not pay the full cash amount upfront or own the underlying product. Instead, you deposit initial margin to enter the futures position. Since only a percentage of the contract’s value needs to be put up initially, futures are highly leveraged financial instruments. This means that slight price movements can have a large impact.
Want to find out more? Read our article on futures.Open an account
Due to their relatively high risk and complexity, futures are not suitable for beginner or inexperienced investors. Investors that choose to invest in futures can bear a loss of capital and generally have a shorter investment horizon. Even for the most experienced investors, losses can be substantial.
If you are a beginning investor, it is best to start off with basic financial products, such as stocks, bonds, exchange-traded funds (ETFs) and investment funds. With these, potential losses are limited to your initial investment.
Investing in futures can help with risk management and speculation. In terms of risk management, investors can use futures to hedge price movements of the underlying product. On the other hand, speculators can use futures to profit from price movements of the underlying product.Open an account
Investing in futures can be rewarding, but it comes with high risk. You can end up losing more than your initial investment. In some cases, the maximum loss is unlimited. We recommend only investing in financial products that match your knowledge and experience and only entering into obligations that you can meet with money that you do not need in the short term.
A unique feature of futures is that they are settled daily. At the end of each trading day, the closing market price is determined by the exchange that the future trades on. This is known as the daily mark-to-market (MTM) price, and it is the same for everyone. There are daily mark-to-market settlements until the expiry of the contract or the position is closed out.
The payment for a futures contract is made at the end of the agreed term. This can be done by physical delivery or a cash settlement, but cash settlement is more common.
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Terms and conditions for the CHF100 transaction fees offer
If you activate your DEGIRO investment account before the 1st of October 2022, DEGIRO will reimburse your transaction fees up to CHF 100. The following conditions apply to this offer:
Acceptance of offer conditions
By participating in the offer, the client automatically accepts the offer conditions and terms. DEGIRO may terminate the campaign prematurely or change the campaign conditions. DEGIRO will communicate any changes via the website.
Participation in the offer is open to all clients who have activated an account at DEGIRO on or before the 30th of September 2022.