The use of financial futures contracts for speculative purposes (Applied study in the Iraqi banking sector)

Abstract

As a result of significant developments in the stock and foreign exchange markets over the past 25 years andthe risks involved, these developments have pushed towards the adoption of financial futures contracts toavoid these risks, usually used to sell and sell an existing one at an agreed price and at a fixed date in Thefuture, and the basis of this contract, is that the asset and quantity are agreed upon upon the signing of thecontract, with the payment of the price being executed and the agreed asset delivered in the future. In viewof the intellectual contemporary of this subject and the scientific study it deserves in depth, this study cameto address the topic in its intellectual, cognitive and applied dimensions and accordingly it has defined thetheoretical and practical framework. Financial futures contracts are one of the most important types offinancial engineering in which it gives the investor important opportunities to reduce the risks to which it isexposed by replacing a certain existing with another at a certain price and at a specific date or before aspecific date in the future. Most interested, clients and specialists agree that financial futures contracts areone of the best investment ideas that investment thought has achieved so far, and the research has concludeda set of conclusions and recommendations.