Bloomberg Terminal is a sophisticated platform used by financial professionals worldwide for real-time market data, news, and analysis. One of its key features is the ability to search and analyze futures contracts, which are standardized agreements to buy or sell an asset at a predetermined price at a specified time in the future. This article provides a comprehensive guide on how to search futures in Bloomberg, detailing the necessary steps, functions, and tools available on the platform.
Understanding Futures and Their Importance
Futures are financial contracts that obligate the buyer to purchase, and the seller to sell, an asset at a future date for a price that is agreed upon today. These contracts are commonly used for commodities like oil, gold, and agricultural products, as well as for financial instruments such as interest rates, stock indices, and currencies. Futures are essential for hedging risk, speculating on price movements, and gaining exposure to different markets.
Getting Started with Bloomberg Terminal
Before delving into the specifics of searching futures, it’s crucial to understand the Bloomberg Terminal interface. Bloomberg Terminal is a powerful tool with a vast array of functionalities, so becoming familiar with its basic navigation and commands is essential.
1. Login and Initial Setup: To start using the Bloomberg Terminal, log in with your credentials. The terminal consists of multiple monitors or screens that can display different windows and panels.
2. Command Line: The command line is where you enter specific Bloomberg commands to access various functions and data sets. It’s usually located at the top of the Bloomberg screen.
3. Help Function: Use the help function by typing HELP <function> to get detailed information and instructions on using various Bloomberg functions.
Step-by-Step Guide to Searching Futures in Bloomberg
1. Accessing the Futures Functionality
2. Navigating the Futures Overview Page
3. Searching for Specific Futures Contracts
4. Analyzing Futures Data
5. Using Bloomberg Functions for Futures
Accessing the Futures Functionality
To begin searching for futures in Bloomberg, you need to access the futures functionality. This can be done through various commands and navigation options.
1. Futures Overview Command: Type FUT <GO> on the command line. This command takes you to the futures overview page, where you can see a broad view of futures contracts across different asset classes.
2. Direct Futures Search: If you know the specific future you are looking for, you can type the symbol or ticker of the future followed by FUT <GO>. For example, to look up crude oil futures, you could type CL1 <FUT> <GO>.
Navigating the Futures Overview Page
The futures overview page provides a comprehensive view of various futures contracts. Here’s how to navigate and make the most of this page:
1. Futures by Category: The page is divided into different categories such as commodities, indices, interest rates, and currencies. You can browse through these categories to find the futures contracts of interest.
2. Market Data: For each category, you can see key market data such as last traded price, change in price, and volume. This allows you to quickly assess the performance of different futures.
3. Filters and Search Bar: Use the filters and search bar at the top of the page to narrow down your search to specific futures contracts. You can filter by exchange, expiry date, and other criteria.
Searching for Specific Futures Contracts
Once you are familiar with the futures overview page, you can search for specific futures contracts. Here’s how to do it effectively:
1. Using Tickers and Symbols: Every futures contract has a unique ticker symbol. For example, the ticker for E-mini S&P 500 futures is ES. Type the ticker followed by 1 <FUT> <GO> for the nearest contract or ALL <FUT> <GO> to see all available contracts.
2. Expiry Date Search: If you are looking for a contract expiring in a specific month, you can include the expiry code in your search. For example, ESU23 <GO> will bring up the E-mini S&P 500 futures expiring in September 2023.
3. Keyword Search: Use the search bar to type keywords related to the futures contract you are interested in. This can be the name of the commodity, index, or financial instrument.
See Also: How Do Stock Market Futures Work?
Analyzing Futures Data
Bloomberg Terminal provides extensive tools for analyzing futures data. Here’s how to utilize these tools:
1. Futures Chain Function: Type FCH <GO> after selecting a futures contract to see the futures chain. This displays all available contracts for the selected future, along with their prices and other key data.
2. Historical Data: Use the HP <GO> function to access historical price data for a futures contract. This allows you to analyze past performance and identify trends.
3. Technical Analysis: Bloomberg offers a range of technical analysis tools such as charts, indicators, and oscillators. Type G <GO> after selecting a futures contract to access charting tools and conduct technical analysis.
4. News and Research: Stay updated with the latest news and research related to your futures contract. Use the CN <GO> function to access news articles, analyst reports, and research papers.
Using Bloomberg Functions for Futures
Bloomberg Terminal has several specialized functions designed to provide detailed information and analysis on futures contracts. Here are some of the most useful ones:
1. FUTURES OPTIONS (OVME <GO>): This function provides an overview of options on futures. You can see option chains, implied volatility, and other key data.
2. FUTURES SPREAD (SPM <GO>): Use this function to analyze futures spreads, which are the price differences between two related futures contracts. This is useful for strategies such as calendar spreads and inter-commodity spreads.
3. FUTURES VOLATILITY (VOL <GO>): Access volatility data for futures contracts using this function. It provides information on historical volatility, implied volatility, and volatility skew.
4. FUTURES ROLL (ROLL <GO>): This function helps you analyze the process of rolling futures contracts from one expiry to another. It provides insights into roll costs and optimal roll strategies.
5. FUTURES POSITION (POS <GO>): Monitor your futures positions using this function. It provides a detailed view of your current positions, including unrealized gains or losses and margin requirements.
Advanced Futures Analysis and Trading Strategies
Bloomberg Terminal is equipped with advanced tools and functions that cater to professional traders and analysts. Here are some advanced features and strategies you can leverage:
1. Futures Arbitrage: Utilize Bloomberg’s arbitrage functions to identify arbitrage opportunities in futures markets. The ARB <GO> function helps you analyze price discrepancies between related futures contracts.
2. Futures Hedging: Use the HDG <GO> function to design and evaluate hedging strategies. This function allows you to simulate different hedge scenarios and assess their effectiveness.
3. Futures Curve Analysis: Analyze the futures curve using the FUTCRV <GO> function. This function provides a graphical representation of futures prices across different expiries, helping you understand market expectations and trends.
4. Portfolio Management: Integrate your futures trading with overall portfolio management using Bloomberg’s portfolio tools. The PORT <GO> function allows you to manage and analyze your entire portfolio, including futures positions.
5. Custom Alerts: Set up custom alerts for futures contracts using the ALRT <GO> function. This ensures you stay informed about price movements, news, and other critical events related to your futures contracts.
Educational Resources and Support
Bloomberg Terminal provides extensive educational resources and support to help you make the most of its futures functionalities:
1. Bloomberg University: Access Bloomberg’s training programs and tutorials through Bloomberg University. These resources cover various aspects of using the terminal, including futures trading and analysis.
2. Help Desk: Utilize the help desk for real-time support and assistance. Bloomberg’s help desk is staffed by experts who can guide you through using specific functions and troubleshooting issues.
3. Bloomberg Community: Join the Bloomberg community to connect with other users, share insights, and learn from industry professionals. This community provides a platform for knowledge exchange and networking.
Conclusion
Searching and analyzing futures in Bloomberg Terminal is a sophisticated process that requires familiarity with the platform’s functions and tools. By understanding how to access futures data, navigate the futures overview page, search for specific contracts, and utilize advanced analysis tools, you can make informed decisions and enhance your trading strategies.
Bloomberg Terminal’s extensive functionalities, combined with its robust educational resources and support, make it an invaluable tool for financial professionals engaged in futures trading. Whether you are a beginner or an experienced trader, leveraging the full capabilities of Bloomberg Terminal can significantly enhance your futures trading and analysis efforts.
