Types of Futures
Futures contracts are classified according to their underlying assets and financial instruments. Here are some examples of common sorts of futures:
1. Commodity Futures: These are contracts that are entirely based on tangible commodities such as gold, oil, wheat, or cattle.
2. Financial Futures: These are financial products such as currency pairs, rates of interest, stock indexes and bonds.
3. Currency Futures: Includes the swap of a particular currency against another at a fixed exchange rate.
4. Stock Indicator Futures: These are contracts that are linked to the outcomes of a particular stock market index, such as the S&P 500.
5. Interest Rate Futures: Interest rates on different financial products, such as government bonds, are linked to interest rate futures.
6. Single-Stock Futures: These are contracts based on a future price of a single stock.
7. Crypto Futures: These futures invests in cryptocurrencies like Bitcoin.
8. Real Estate Futures: These futures contracts are based on the worth of real estate indices in the future.
9. Weather Futures: Derivatives based on weather conditions that are employed by companies that are affected by weather variations.
10. Commodity Index Futures: Tracks the efficiency of a basket of commodities.