Futures

Make investments or hedge risks with futures

A future, or a futures contract, is an agreement which imposes an obligation / gives the right for the customer to buy or to sell a specified asset on a specified future date at a specified price. When buying or selling a future, the customer pays a commission fee to the bank. The amount of the commission fee depends on the futures exchange on which the future is traded and the number of futures contracts traded.

Frequently asked questions

  • What are the advantages of using futures?

    Futures give an opportunity to invest in or to hedge against the risks associated with assets which often are not available on the markets in any other form. One of the main advantages of futures is that futures can be used to make a profit on both rising and falling prices.
  • What type of investors may use futures?

    Futures may be used by investors seeking to make a profit on price fluctuations, i.e. to speculate, or by investors seeking to hedge against certain risks, such as the risk of price fluctuations of commodities (grains, oil products, metals).
  • How can one make a profit using futures?

    Futures may be used for making a profit on both price increases and price drops.
  • What risks do futures entail?

    The prices of futures may fluctuate substantially. In the event of unfavorable price developments, the investor may suffer losses. For further information about risks, see the Guide for Transactions in Financial Instruments available on the Swedbank website under "Retail banking" - "Savings and investments" - "Investments" - "Protection of investor interests".
  • What are the conditions of futures?

    All the conditions of futures contracts, except for the price, are standardized - for example, the underlying asset, volume of a single contract, and the last day of trading of the contract. When entering into a futures contract, the customer places collateral with the bank, so that the bank would not suffer a loss in case the customer does not fulfill their obligations under the contract.
  • What do I need in order to be able to trade futures?

    In order to trade futures, you need to sign the Agreement for Financial Market Transactions and fill out the Complex Financial Instruments questionnaire.
  • What are the underlying assets of futures?

    Futures contracts allow the making of investments in equity indices, commodities, bonds and other assets. For example, an investor can invest in the German DAX equity index, the US S&P 500 equity index, oil, gold, silver, wheat, copper, nickel, cotton, orange juice, corn, rapeseed and other instruments.
  • How to give orders for trading futures?

    Futures contracts can be traded on business days from 09:00 to 17:00 by phone.

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Further information about futures contracts is provided in the Guide for Transactions in Financial Instruments, available on the Swedbank website under "Retail banking" - "Savings and investments" - "Investments" - "Protection of investor interests".