Future (OTC) Currencies



Future (OTC) Currencies traded at JMI Brokers are: Canadian $, Australian $, Euro, British pound, Japanese Yen and the Swiss Franc.

The principle of buying and selling for future delivery has characterized the markets for over a century and a half in physical commodities, mainly metals and staple foodstuffs. It has also been the feature of the foreign exchange markets, where prices can be agreed today for foreign currencies and other financial instruments that can be delivered in the future.

Futures Markets are markets in which participants can fix the price they will pay or receive for bonds, shares and currencies and other financial products, in the future (effectively the parties thus "lock into" a known exchange rate/price).

Trading is made by buying or selling futures contracts which are standardized according to the quality, quantity, delivery time and location for each instrument. A futures contract is specified with the month during which the delivery or settlement is to occur i.e. if the product is gold and delivery is in July then the price quoted is for July Gold.
There are three types of participants in futures markets, the one that wants physical delivery, the hedger who wishes to protect himself/herself against adverse movements in prices and the speculative investor.
The speculative investor has no intention of making or taking delivery of the commodity but, rather, seeks to profit from a change in the price. Investors buy a product when they anticipate rising prices i.e. entering long (and sell that product later, at the higher price), or sell a product when they anticipate declining prices i.e. entering short (and then buy that product later, at the lower price).

If you speculate in futures contracts and the price moves in the direction you anticipated, then you will be making profit. Conversely, if prices move in the opposite direction then losses are made. Speculators therefore are individuals and corporations who seek to profit from anticipated increases or decreases in futures prices.
For those individuals who fully understand and can afford the risks that are involved, the allocation of some portion of their capital to futures trading can provide a means of achieving greater diversification and a potentially higher overall rate of return on their investments.

Foreign exchange (FX) futures (OTC) are offering investors as well as risk managers opportunities to get benefits from market fluctuation .JMI customer's benefit from dealing anonymously in a fully transparent market, where large and small customers have equal access to the same prices and same liquidity with a very low margin requirement and superb trading conditions.
JMI Brokers offers 6 FX Futures (OTC) that covers major currency pairs and attracts both buys and sell investors including hedge funds, financial institutions and individual investors.

Benefits of trading FX Futures (OTC):

  • Market Spread (very tight spreads).
  • Low commissions fees.
  • Open, fair and anonymous currency trading.
  • Low margin requirements.
  • Very fast and liquid market.
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  • Main Currencies

  • Product Name

    Symbol

    Contract Size

    Spread

    Order

    Minimum Fluctuation

    Margin

    Months Traded

    Expiration Date

    Trading Hours (GMT)

    European Currency

    EC

    125,000 EUR

    Market Spread

    5 pips

    1 pip = $12.5

    1,000 USD

    Mar, Jun, Sep, Dec.

    Mar-16/03/07
    Jun-15/06/07
    Sep-14/09/07
    Dec-14/12/07

    Sun Open: 22:00 - 22:00 Reopen: 23:00 - 22:00 Fri Close: 22:00

    British Pound

    BP

    62,500 GBP

    Market Spread

    5 pips

    1 pip = $6.25

    1,000 USD

    Mar, Jun, Sep, Dec.

    Mar-16/03/07
    Jun-15/06/07
    Sep-14/09/07
    Dec-14/12/07

    Sun Open: 22:00 - 22:00 Reopen: 23:00 - 22:00 Fri Close: 22:00

    Swiss Franc

    SF

    125,000 CHF

    Market Spread

    5 pips

    1 pip = $12.5

    1,000 USD

    Mar, Jun, Sep, Dec.

    Mar-16/03/07
    Jun-15/06/07
    Sep-14/09/07
    Dec-14/12/07

    Sun Open: 22:00 - 22:00 Reopen: 23:00 - 22:00 Fri Close: 22:00

    Japanese Yen

    JY

    12,500,000 JPY

    Market Spread

    5 pips

    1 pip = $12.5

    1,000 USD

    Mar, Jun, Sep, Dec.

    Mar-16/03/07
    Jun-15/06/07
    Sep-14/09/07
    Dec-14/12/07

    Sun Open: 22:00 - 22:00 Reopen: 23:00 - 22:00 Fri Close: 22:00

    Australian Dollar

    AD

    100,000 AUD

    Market Spread

    5 pips

    1 pip = $10

    1,000 USD

    Mar, Jun, Sep, Dec.

    Mar-16/03/07
    Jun-15/06/07
    Sep-14/09/07
    Dec-14/12/07

    Sun Open: 22:00 - 22:00 Reopen: 23:00 - 22:00 Fri Close: 22:00

    Canadian Dollar

    CD

    100,000 CAD

    Market Spread

    5 pips

    1 pip = $10

    1,000 USD

    Mar, Jun, Sep, Dec.

    Mar-16/03/07
    Jun-15/06/07
    Sep-14/09/07
    Dec-14/12/07

    Sun Open: 22:00 - 22:00 Reopen: 23:00 - 22:00 Fri Close: 22:00

  • Trading Examples

  • A client believes that the EURO Future Contract is due to rise in the future against US dollar, to get benefit of the situation the client intends to buy EURO Future Contract.
    EURO is quoted at 1.3580 - 1.3581, the client buys 8 lots at 1.3581, the client requires minimum deposit of 1000 $ for each lot.

    EURO prices rise to 1.3625 - 1.3626, the client is satisfied with his profit and wants to close his positions, he therefore sells 8 lots of EURO Future at 1.3625, so the client has made profit of 44 points (1.3625 - 1.3581 = 0.0044) . To calculate the profit we will do the following:

    1. (Close price - open price) - (1.3625 - 1.3581 = 44 points)
    2. (points * pip value * number of lots) - (44 * 12.5 * 8 = 4400 US$)
    3. So the gross profit for the previous transaction is 4400 $.

    *Commission charges are NOT included in the above calculations.

    FUTURE (OTC) CURRENCIES


    Buying" to profit from the expected price increase ("Going Long")
    Future instruments are traded with the forwarded month's value. For example, assuming that now is January; tradable future contract for Euro is March (ECMAR). Over the coming month, the client expects the price to increase and decides to "buy", "x" number of lots of ECMAR (each lot representing 125,000 Euro) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Long".

    If the price of Euro appreciates, the client can "close" the trade, with a profit, by "selling", "x" number of lots of ECMAR. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.

    Example 2 :
    "bought" 1 lot of ECMAR at 1.3350
    "sold" 1 lot of ECMAR at 1.3380

    Calculation:
    ("selling price" - "buying price") * contract size * number of lots = realized profit/loss
    (1.3380 - 1.3350) * 125,000 * 1 = + USD375.-

    "Selling" to profit from the expected price decrease ("Going Short")
    Future instruments are traded with the forwarded month's value. For example, assuming that now is January, tradable future contract for Euro is March (ECMAR). Over the coming month, the client expects the price to decrease and decides to "sell", "x" number of lots of ECMAR (each lot representing 125,000 Euro) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Short".

    If the price of Euro depreciates, the client can "close" the trade, with a profit, by "buying", "x" number of lots of ECMAR. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded

    Example 2:
    "sold" 3 lots of ECMAR at 1.3380
    "bought" 3 lots of ECMAR at 1.3350

    Calculation:
    ("selling price" - "buying price") * contract size * number of lots = realized profit/loss
    (1.3380 - 1.3350) * 125,000 * 3 = + USD 1,125.-

    Note: In the two examples above, in cases where the price of ECMAR moves in the opposite direction than expected, the realized profit shown above becomes a loss.

Spot Precious Metals traded at JMI: Gold and Silver

Nations around the world embraced gold and silver as a store of wealth and a medium of international exchange. Individuals have sought to possess precious metals as insurance against the day-to-day uncertainties of paper money. Gold, silver, platinum and palladium constitute the majority of trading in precious metals.

Trading in precious metal futures market or spot market in a speculative manner provides an important alternative to traditional means of investing in precious metals such as gold bullion, coins, and mining stocks, and where substantial profits, as well as losses can be made. Trading contracts in precious metals also provide valuable trading tools for commercial producers and the users of these metals.

Precious metals are traded on the futures and spot markets in contracts (a contract of gold is 100oz while a contract of silver is 5000oz). On the spot market, precious metals are usually bought or sold based on a value date of 48 hours which can be rolled over on a daily basis thereafter. Trading on the futures market is done by buying or selling precious metal for a specific settlement date in the future. For example July Gold, can be bought in March for July settlement.
Trade with JMI Brokers now the most traded, liquid and easily understood precious metals products on earth: Gold and Silver.
We offer our clients very tight spread on spot gold and silver with uninterrupted live pricing on our platform JMI Brokers Trading as well as trading precious metals futures with market spreads.

Benefits of trading with Precious Metals:

  • Precious metals have been a solid hedge against a declining U.S. dollar
  • Precious metals have been a proven safe-haven in times of war, political strife and uncertainty
  • Precious metals can offer outstanding price appreciation and profit potential
  • Spot Precious Metals

  • Product Name

    Symbol

    Contract Size

    Spread

    Stop-Limit Orders

    Minimum Fluctuation

    Margin

    Trading Hours (GMT)

    Gold

    XAUUSD

    100 oz

    0.5

    5 PIPS

    0.1 tick = $10

    1,000 USD

    Sun Open: 22:00 - 21:15  Reopen: 22:00 - 21:15
    Fri Close: 21:15

    Silver

    XAGUSD

    5,000 oz

    0.05

    5 PIPS

    0.01 tick =$50

    1,000 USD

    Sun Open: 22:00 - 21:15  Reopen: 22:00 - 21:15
    Fri Close: 21:15

  • Future (OTC) Precious Metals traded at JMI: Gold and Silver

  • The principle of buying and selling for future delivery has characterized the markets for over a century and a half in physical commodities, mainly metals and staple foodstuffs. It has also been the feature of the foreign exchange markets, where prices can be agreed today for foreign currencies and other financial instruments that can be delivered in the future.

    Futures Markets are markets in which participants can fix the price they will pay or receive for bonds, shares and currencies and other financial products, in the future (effectively the parties thus "lock into" a known exchange rate/price).

    Trading is made by buying or selling futures contracts which are standardized according to the quality, quantity, delivery time and location for each instrument. A futures contract is specified with the month during which the delivery or settlement is to occur i.e. if the product is gold and delivery is in July then the price quoted is for July Gold.
    There are three types of participants in futures markets, the one that wants physical delivery, the hedger who wishes to protect himself/herself against adverse movements in prices and the speculative investor.
    The speculative investor has no intention of making or taking delivery of the commodity but, rather, seeks to profit from a change in the price. Investors buy a product when they anticipate rising prices i.e. entering long (and sell that product later, at the higher price), or sell a product when they anticipate declining prices i.e. entering short (and then buy that product later, at the lower price).

    If you speculate in futures contracts and the price moves in the direction you anticipated, then you will be making profit. Conversely, if prices move in the opposite direction then losses are made. Speculators therefore are individuals and corporations who seek to profit from anticipated increases or decreases in futures prices.
    For those individuals who fully understand and can afford the risks that are involved, the allocation of some portion of their capital to futures trading can provide a means of achieving greater diversification and a potentially higher overall rate of return on their investments.

    Product Name

    Contract Size

    Symbol

    Spread

    Order

    Minimum Fluctuation

    Margin

    Months Traded

    Trading Hours (GMT)

    Gold

    100 oz

    GC

    Market Spread

    0.50

    0.1 = $10

    1,000 USD

    Feb, Apr, Jun, Aug, Dec.

    Sun Open: 22:00 - 21:15  Reopen: 22:00 - 21:15
    Fri Close: 21:15

    Silver

    5,000 oz

    SI

    Market Spread

    0.02

    0.005 = $25

    1,000 USD

    Mar, May, Jul, Sep, Dec.

    Sun Open: 22:00 - 21:15  Reopen: 22:00 - 21:15
    Fri Close: 21:15

  • Trading Examples

    • Example 1: Buying Spot XAUUSD Contract
      • (Closing price - opening price) - (780.5 - 760.90 = 19.6 $ per contract)
      • If each contract consists of 100 oz (the value of the gold contract) then we must multiple 19.6 by 100, the profit therefore will be 19.6 * 100 = 1960 $ per contract Gross profit: (1960 * 4 lots = 7840 $)

    A client believes that Gold price against US Dollar is going to rise in the future. To exploit the situation the client intends to buy GOLD (XAUUSD).
    Spot gold quoted 760.20 /760.90; the client buys 4 lots at 760.90. This required a total margin of 4000 $ (margin of each lot is 1000 $).
    As expected spot gold price rises to 780.50/780.20; the client decides to sell these 4 lots (close his positions). So he sells 4 lots at 780.50.
    It's obvious that client has made a profit; to calculate it we should do the following:
    *Commission charges are NOT included in the above calculations

    • Example 2: Selling Silver Future (SI_0Y) Contract
      • (Closing price - opening price) - (13.23 - 13.14 = 0.09 $ per contract)
      • If each contract consists of 5000 oz (the value of the silver contract) then we must multiple 0.09 by 5000, the profit therefore will be 0.09 *5000= 450 $ per contract.
      • Gross Profit: (450*6lots = 2700 $)

    A client believes that silver prices is going to fall in the future, silver future price is quoted 13.14/13.155. The client sells 6 lots at 13.14. This required a total margin of 6000 $ (margin for each lot is 1000 $).
    The silver didn't move in the client's favor and its price now is 13.22/13.23, the clients decides to buy 6 lots of silver future contract (close his positions), so he buys 6 lots at 13.23.
    To calculate the loss of the client we should do the following:
    *Commission charges are NOT included in the above calculations.

Future (OTC) Energies



Future (OTC) Energies traded at JMI Brokers are: Light Sweet Crude Oil, Natural Gas.

Crude oil is the raw material that is refined into gasoline, heating oil, jet fuel, propane, petrochemicals, and other products. In today's complex global markets, the price of crude oil is set by movements on the three major international petroleum exchanges the New York Mercantile Exchange, the International Petroleum Exchange in London and the Singapore International Monetary Exchange.

Prices of crude oil have always been volatile and are greatly influenced by supply and demand. They behave much as any other commodity with wide price swings in times of shortage or oversupply and in times of political instability. The crude oil price cycle may extend over several years.

There are two types of crude oil, sour crude is primarily the type of crude that comes from OPEC, as opposed to West Texas Intermediate (WTI) or sweet crude. The WTI price is traded on the New York Mercantile Exchange (NYMEX).

Crude oil began futures trading on the NYMEX in 1983 and is the most heavily traded commodity. It trades in units of 1,000 US barrels i.e. 42,000 US gallons (1 contract), and the price is quoted in dollars and cents per barrel. The minimum price fluctuation in the price of crude oil is US$ 0.001per barrel (US$ 10 per contract).

Crude oil Futures trading has always been of tremendous interest to speculators who hope to profit from the ever changing price of this commodity.
JMI Brokers offers (OTC) Light Sweet Crude Oil and Natural Gas Contracts. Crude Oil and Natural Gas are the world's most actively traded Energy contracts. Both contracts have Transparent pricing and deep liquidity and easy-to-access industry information.

  • Specification

  • Product Name

    Symbol

    Contract Size

    Spread

    Order

    Minimum Fluctuation

    Margin

    Months Traded

    Trading Hours (GMT)

    Light Sweet Crude Oil

    CL

    1000 Barrel

    Market Spread

    0.30

    0.01 tick =$10.0

    2,000 USD

    All year.

    Sun Open: 23:00 - 22:15

    Reopen: 23:00 - 22:15

    Fri Close: 22:15

    Natural Gas

    NG

    10,000 Million (mmBtu)

    Market Spread

    0.30

    0.005 tick  = $12.5

    2,000 USD

    All year.

    Sun Open: 23:00 - 22:15

    Reopen: 23:00 - 22:15

    Fri Close: 22:15

  • Trading Examples

    • Buying Crude Oil contract

      • (Opening price - closing price) - (67.125 - 66.40=0.725 points)
      • Loss = (0.725*Contract Size* No. of lots) = (0.725*1000*5=3625$)
      • Gross loss = 3625 $

    A client believes that the price of light sweet crude oil contract will rise according to political reasons, the market now is 67.10/67.125. The client buys 5 lots of oil at 67.125. Out of expectations the oil price falls to 66.40/66.45. The client decides to sell 5 lots (close current positions) at 66.40. To calculate the loss of this client we should do the following:
    *Commission charges are NOT included in the above calculations.