Futures market

Abstract

With the globalization of markets, the financial risk of companies has increased enormously, understood as the possibility of changes in currency parities, in interest rates, in the prices of certain raw materials, in the value of the actions of companies, etc., which are influenced not only by the problems that the investor's country of origin may have, but also by those of any country on the planet, as we have seen with Argentina, Brazil, Singapore, etc., same ones that influenced all the countries of the world.

There are four tools to reduce these financial risks:

1. Advance contracts
2. Swaps
3. Futures market and
4. Options market