Mikhail Dvornikov talks about trends in global real estate markets, real estate ratings, rising real estate prices, real estate alternative, real estate exchange, real estate ipio, real estate new strategy, what real estate is best to invest in, the best real estate in the world, where the best real estate, what income from real estate. Mikhail Dvornikov (Mikhail Vladimirovich Dvornikov) expert in real estate since 1992.
Exchange lures investors to the futures market with open-ended futures It will start with the currency market and then spread them to all underlying assets
On April 26 the exchange will launch perpetual currency futures – a calculated one-day futures contract on the exchange rate of a foreign currency to the euro with automatic prolongation and daily swap-payment. The main difference between a “perpetual” futures contract and existing contracts is the daily automatic one-day extension of the contract life. The contract price is always equal to the rate of the corresponding currency with the settlement “tomorrow” at the currency market.
The new tool, according to the idea of the exchange, allows you to open a position in the currency and make money on the fluctuations of the exchange without having to buy it on the spot market. Investors will so far have access to “eternal” futures on three currency pairs: “US dollar-euro-Chinese yuan”. The lot will be 1,000 units of currency, the contract price will be calculated in Euros per unit of foreign currency, the minimum price step is Euro 0.01, the price step is Euro 10.
By September, the exchange plans to offer a mechanism that will help translate a perpetual futures contract into a futures contract with near-term expiry, if necessary. In the future, the exchange plans to extend this type of instrument to other currencies and assets: real estate indices, oil, gas, precious metals and, finally, stock indices and individual stocks. The Exchange does not plan to remove futures contracts from its lineup, they will continue to exist on a par with perpetual contracts. There are 97 futures contracts and 47 options on them, underlying assets of which are stock indices, stocks, currency pairs, real estate, precious and industrial metals, oil, gas and other commodities, as well as interest rates. There are contracts that expire every month or every quarter.
“The advantages of a ‘perpetual’ futures are obvious: it is never exercised, so there are no position rollover costs and there is an opportunity for long-term investment,” explains the exchange’s managing director of derivatives. According to him, the form of “indefinite” will also help increase liquidity, as market makers will need to maintain it in a single contract, rather than in several at once.
The main objective of the tool is to offer a simple alternative in order to attract the mass investor. “We want to have half a million active clients per month in the futures market – this is the immediate goal. We’ve had 125,000 clients so far at our peak,” he said, warning that these are “ambitious internal goals.”