Futures has been the baby boom in financial market nowadays. It refers to financial contract obligating the buyer to purchase an asset (or the seller to sell an asset) at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset. They are standardized to facilitate trading on a futures exchange, settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock market index.
Futures can be used either to hedge or to speculate on the price movement of the underlying asset. Originally, a producer of corn could use futures to lock in a certain price and reduce risk (hedge). On the other hand, anybody could speculate on the price movement of corn by going long or short using futures.
Options and futures are likely to be similar, the primary difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfill the terms of his/her contract.
In real life, the actual delivery rate of the underlying goods specified in futures contracts is very low. This is a result of the fact that the hedging or speculating benefits of the contracts can be had largely without actually holding the contract until expiry and delivering the good(s). For example, if you were long in a futures contract, you could go short in the same type of contract to offset your position. This serves to exit your position, much like selling a stock in the equity markets would close a trade.
Since its inception in July, 2005, PT.Midtou Aryacom Futures has succesfully grown to become one of Indonesia most reputable Futures Trading Company. Our first head quarter was located in Sarinah Building 12th floor, JI.M.H. Thamrin, Jakarta Indonesia. Entrusted by our investors loyalty, our company has expand its family into the new head quarter office at UOB Plaza Thamrin Nine 41 st floor, JI.M.H. Thamrin kav 8 – 10, Jakarta, Indonesia.
As an independent Futures Trading Company, PT. Midtou Aryacom Futures has legally operate its business under legal license from Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI). Our company also listed as the member of Jakarta Futures Exchange and Indonesia Derivatives Clearing House.
Since its Founding, PT. Midtou Aryacom Futures and its people have helped redefine the meaning of the futures trading services. Our company has continually broken new ground in advising our investors on strategic transactions and in providing new opportunities for individual institutional investors. Accommodating our investors with convenient online portable device from PC, ipad, iphone, Android and continually upgrading our level of efficiency to develop better services for the benefit of our investors and the company.