Finance InstaFutures

FAQ

• What are InstaFutures like?
  InstaFutures are a trading instrument developed by InstaForex which enables traders to earn on EUR/USD price fluctuations. A futures contract allows a trader to speculate on the direction of the currency pair, either up or down, at the end of the contract term. Quotes are set in the range of 0.9999 to 0.0001 where 0 means that a forecast has failed and 1 means that a forecast has come true. For example, a trader reckons there is a 60% chance that EUR/USD will grow by the end of the week, i.e. at the expiration date. In this case, a trader sets a price at 0.6.
• What are the principles of trading InstaFutures?
  A contract is made for the term of 1 week. Trading begins at 00:00 (the time displayed on a trading platform) on Monday and closes at 21:00 on Friday (the time displayed on a trading platform). When trading InstaFutures, clients of the broker bet entirely against each other.

  The essence of trading InstaFutures is a prediction of the EUR/USD direction by the closing time on Friday (21:00) relative to the time of opening a contract. The current price of InstaForex is determined on the grounds of supply and demand among all participants. If a trader expects EUR/USD to rise, he/she buys the currency pair at the current price. Alternatively, if a trader assumes the pair to fall, he/she makes a sell contract. The amount of a gain always equals the amount of a loss. The company charges a commission of 0.5%. InstaFutures can be sold within a week before the expiry date of a contract, i.e. earlier than at 21:00 on Friday. A trader is free to do this if he/she thinks that the expected result is getting less probable, so the solution could be to fix a profit or a loss.

  Besides, traders have an opportunity to choose the best price for InstaFutures on the basis of the order book. The mechanism of such deals is as follows:

  • а) Traders place pending orders (limit orders) at preferable levels;
  • b) Trader N wants to buy or sell InstaFutures immediately and agrees with the price in the nearest pending orders. What is more, he/she buys at the best (!) price of all available ones;
  • с) Trader N can make a deal at that price in a volume which does not exceed the total volume of all pending orders at that particular price;
  • d) If the volume is not enough, a deal will be made at the nearest price of other pending orders.

  The result of a weekly trading session is finalized as follows.

  1. If EUR/USD closes on Friday at a price higher than an opening price on Monday, the buyer gains a profit.

  2. If a closing price is lower, the seller gains a profit. A profit/loss is reckoned by means of a special calculator.

  InstaFutures are traded on InstaForex’ own trading platform and on MT4 which can be also downloaded on mobile devices. MT4 is available on the App Store and Google Play.  InstaFutures are designated as EURUSDweek on MetaTrader 4. Since January 4, 2021, InstaFutures can be traded in a longer session which is one month long. They are designated as EURUSDmonth on trading platforms. The rules and terms of trading monthly InstaFutures are the same as for weekly InstaFutures.
• What advantage can be gained from trading InstaFutures?
  Participants trade entirely against each other without any involvement of the broker. A profit amount always equals a loss amount minus the broker’s commissions. Hence, InstaFutures are an excellent simulator that will help you exercise trading skills, practice market analysis, and develop market vision. You learn how to make good trading decisions and, above all else, you have an opportunity to earn.
• What exactly does InstaFutures price consist of? 
  InstaFutures are traded in two ways: by making trades at market quotes and by setting pending (or limit) orders for those who are not ready to pay a market spread. A trader sets up a spread and places a limit order. All orders are amassed in the order book. When an opposite order pops up in the market with a similar price or there is a futures contract on the terms of immediate execution, the asset is actually bought or sold. InstaFutures can be sold before an expiration term if a trader thinks that his/her prediction gets less probable or he/she wants to fix a profit/loss accumulated since the moment of opening a contract. The exact value of a futures contract depends on a demand/supply balance as well as a volume of actual trades among InstaForex clients.