Type of Futures Contracts
You can classify the existing types of futures contracts attending to the underlying assets in which they are based. In this way we can find: futures about physical assets and futures about financial tools.
Futures about Physical Assets (Commodities Futures)
The physical assets in which these type of contracts is based come from two great groups: Agricultural and metal products.
The first futures about real assets as Known for the world were negotiated in Japan in the XVIII Century. Now days its use has been extended throughout the world, and on the main markets there is already an standardization of the futures contracts that negotiate on commodities, as for the different qualities of each of the products. The following are examples of contracts negotiated on the most important world markets:
- Chicago Board of Trade (CBOT): futures about wheat, oat, corn, soybean, gold and silver
- Chicago Mercantile Exchange (CME): Breeding livestock, pigs and wood.
- Coffee, sugar and cocoa exchange (CSCE): Coffee, sugar and cacao
- Commodity exchange Inc. (COMEX): aluminum, copper, gold, and silver
- New York Mercantile Exchange (NYMEX): Palladium, platinum, crude, propane, gasoline, and lead.
- London, metal exchange (LME): aluminum, copper, lead, nickel, silver, and zinc.
- Hong Kong futures exchange (HKFE): Sugar, soybean, and gold.
Futures About Financial Tools (Financial Futures)
As already mentioned before, the financial futures began to be negotiated on the 70īs. The assets I who they are bases are: Foreign Currency, types of interest (Debt instruments and Inter banking deposits) and stock exchange indexes.
The following are some of the financial assets negotiated on the most important world markets:
- Chicago Board of Trade (CBOT): American Treasury Promissory Notes (from five to ten years), American Treasury bonds and several indexes (CBOT, Index, Major market index, Municipal Bonds).
- Chicago Mercantile Exchange (CME): Australian dollar, English pound, Canadian Dollar, German Marks, French Francs, Japanese Yen, Swiss Franc, American Treasury promissory Notes (at five years), and the US Dollar Index.
- London International financial futures Exchange (Life): English Pound, German mark, Swiss Franc, Japanese Yen, American Dollar/German mark Contract, Financial times 100 Index.
- Marche a Terme International de France (MATIF): French Government Bonds, French Treasury Promissory notes at 90 days.
- Hong Kong futures exchange (HKFE): Hang Seng Index, Hong Kong dollar Type of interest at three months.
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