Types of derivatives Derivatives are types of instruments. Their value fluctuates depending on their underlying asset, which can be for example shares, stock indices, currencies, commodities, etc. We know a large number of derivatives, the most well-known are futures contracts, options and forwards.

Spot A spot or spot transaction is a process in which the subject of the transaction is for example an asset delivered immediately and the transaction is settled during the spot day. Future contracts with a maturity of up to one month are also considered a spot transaction.

Futures It is a contract that commits the parties to settle at a future date at a pre-agreed price. The subject of the trade is a contract whose price is influenced by the price of an underlying asset, which may be stocks, currencies, stock market indices, and others.

Margin Is the amount of money required to open a position that is locked in after entering the trade. It serves to cover in case the trade turns out differently than we anticipated. If the blocked margin drops below a certain level, the broker will automatically close the losing trade to always have financial cover available.

CFD Trading Contract For Difference – CFDs are types of contracts which have become the most popular way of trading commodities, indices, currencies and stocks for online investors. This type of trading is also highly risky. Such trading does not involve an actual asset and operates independently of the market. CFD trading allows more flexibility than traditional trading, the investor can use leverage, partial shares and short selling.