How can I buy or sell mini futures?
If you want to buy mini futures, you first need a securities account – either from a broker or a bank like Vontobel or Société Générale. Since mini futures are speculative asset classes, investors need to be familiar with the risks of financial futures. Before acquiring the first mini futures, the custodian bank ensures that investors are familiar with the risk of leveraged products. As a rule, achieving the so-called financial futures ability is not a major hurdle. Either investors prove that they have already traded speculative financial products in the past. Alternatively, the bank or broker provides risk information for your information or refers to corresponding online pages on which the investor must confirm that they have familiarized themselves with the topic.
In general, mini futures can be traded just as easily as other derivatives or warrants. Assuming a securities account and financial futures ability, investors can choose the right product from issuers. For this, the security identification number (WKN) of the mini future is necessary to ensure unambiguous identification. The product can then be purchased during the opening hours on specialized certificate exchanges or over the counter directly from the issuer.
The product is also traded in the cash market or over the counter. As long as the stop-loss threshold is not touched and the mini-future is traded, the issuers ensure that trading remains liquid and always offer market-oriented selling and redemption prices. Mini-futures owners can therefore separate from their product at any time. If the sale on the stock exchange cannot be completed within a short time due to a lack of buy or sell orders, the transaction is carried out directly with the issuer.
If a mini future touches the stop loss threshold, trading in the product is discontinued. The issuer releases the hedges as soon as possible when this threshold is reached. This should usually be done within 60 minutes. In a few cases – especially in the case of extreme and rapid price changes – it is possible for the hedging transactions to be released very close to the exchange-traded base price, even though a clearer buffer was planned between the stop-loss threshold and the base price. In this case, the remaining amount may be so low that the investor suffers almost a total loss.
Our recommendation: Mini futures are long-term investments, but the intrinsic value of the mini futures decreases the longer the investor holds it. This effect is due to the daily financing costs with which the issuer bears interest on his “credit” for the investor.