Futures


Futures are derivative products, that derive their value from the price movement of an underlying instrument such as Gold, Coffee, a Currency pair, a Stock Index or a Government Bond. They are essentially contracts with an obligation to buy or to sell an instrument (in a certain quantity) at or before a fixed time for an agreed price. Futures are traded at large exchanges that formulate the contract terms. The buyer of a contract holds a long position, the seller of a contract holds a short position. Futures have a finite lifespan that ends at a preset expiration date.
They can either be used to hedge investment positions (to mitigate the risk of price movements) or to speculate (to try and profit from price movements). Futures trading started 150 years ago as a way to manage agricultural production. Planting and harvesting cycles created swings in prices and futures contracts were created to manage that risk. They have evolved into the exchange-traded instruments we know today, which are a key part of the financial system.

CFD futures are priced directly from the underlying futures markets, with commissions, financing charges and dividend adjustments all built into the spread itself. IC Broker offers competitive spreads across all of our Future CFDs.


The following table shows our selection of global Futures CFDs
Index Symbol
ICE Dollar Index Futures DXY
CBOE VIX Index Futures VIX
Brent Crude Oil Futures BRENT
WTI Crude Oil Futures WTI

Upcoming Expiring, Spot Oil and Tradable Markets

Futures expiry/roll process


IC Broker Futures CFDs are set to expire on the day the contract expires on the underlying market. When a Futures CFD contract expires, all open positions will be closed at the futures settlement price; as reported by the futures exchange. This process would usually take place on the day following the expiry. Open positions are not rolled to the next front month so any clients wishing to hold long term positions must reopen the trade on the next available contract.
Index Symbol Contract Month Expiry Date
US Dollar Index Futures DXY_M0 JUNE-20 15-06-2020
US Volatility Index Futures VIX_M0 JUNE-20 16-06-2020
WTI Crude Oil Futures WTI_N0 JULY-20 19-06-2020
Brent Crude Oil Futures BRENT_Q0 AUGUST-20 29-06-2020

Soft Commodities Expiry Information:

Soft Commodity Contract Month Expiry Date
Coffee_N0 JULY-20 15-06-2020
Cocoa_N0 JULY-20 15-06-2020
Cotton_N0 JULY-20 15-06-2020
Wheat_N0 JULY-20 16-06-2020
Corn_N0 JULY-20 23-06-2020
Soybean_N0 JULY-20 23-06-2020
OJ_N0 JULY-20 29-06-2020
Sugar_N0 JULY-20 29-06-2020

Futures CFD Example

Buying the Volatility Index (VIX)

The gross profit on your trade is calculated as follows:

Opening Price

$14.20

Closing Price

$18.20

Difference

4.00 (400 Index points)

Gross Profit on Trade

400 x 1 contracts ($0.01 per point) = USD $4.00

Opening the Position

The price of the VIX is 14.05/14.20. You are of the view that market volatility will increase so you decide to buy 1 contract at 14.20. (One contract is equal to $0.01 per point, there are 100 pointsper 1.00 change in the index). No commission is charged on Futures CFDs.
For every point that the bid quote on the VIX rises above 14.20 you will make a profit of $0.01 USD, for every point the bid quote falls below 14.20 you will lose $0.01 USD.

Closing the Position

Four days later, the VIX has risen to 18.20/18.35 and you decide to take your profit. You close your position by selling 1 contract at 18.20.

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