Foundations and Formation of Electronic Oil Futures Contracts

Abstract

Iran is in a special place in terms of oil exports, and it is natural that in this valley traders are also looking for a better market and more profits. With development and progress of the Internet and new technologies, the world economy has taken an upward trend towards e-commerce. The questions that will be answered are the questions that can be answered between the Iranian Stock Exchange and the International Forex Market, which one can be suitable for oil traders and what kind of contracts they sign to make more profits. Therefore, this research aimed to explain the nature and fundamentals of stock and forex markets and future contracts and their differences, to have a comparative view on their advantages and disadvantages towards each other and to investigate the conclusion of futures contracts in these two markets. The findings indicate that the international forex market in Iran is legal and legitimate and has many advantages for oil traders compared to the stock market and it is proved that trading in this market is not gambling and usury. Also, if you use contracts for difference or CFDs in their transactions, they will receive more points. Special formalities are needed to conclude future contracts on the stock market and Forex markets.

Keywords

• electronic contracts
• oil futures contracts
• energy futures exchange
• derivative instruments