Futures trading

Futures trading has some differences compared with other kinds of trafficking. Because of these differences is precisely the extraordinary appeal will sell futures. You will recognize the term 'two-way opportunity' and 'leverage', you do not get in the form of trading financial instruments in general fact, in stock trading will be very difficult to find.



Two-way opportunity
Price is always moving dynamically. Interestingly, in futures trading you can get advantage of two-way price movements: up and down. You can still make good profit opportunities when prices are moving up or down. The important thing you have to accept a position (transactions) That's the direction of the price trend. In the trading world, this is seen as "two-way opportunity".
The following example will clarify the scheme:
When you expect prices to start up, then you can take a position (open transaction) "BUY" ; or sometimes called position "LONG". If your analysis is right, if the price and then move higher, the greater the benefit you will receive.
At present, the question then is: what if if previously you expect prices to goThis was very interesting.esIf you calculate the price of a commodity or the subject of trade will fall, so you can take a position (open transaction)ction)
"SELL" (sell); or sometimes called position
"SHORT". If your analysis is powerful, then the benefits that you will gain will be even greater precisely when commodity prices fallYour next question might be: "What if the price falls after I took the position BUY; or prices go up after I open SELL position?on? "
The result of course is that you will lose money.
That's why every transaction must pass away through the process of analysis beforAs important is the "risk management" and "trading plan". plan". If yoIf you've mastered these things, you will be capable to optimize opportunities and minimize These things you will find out more in this educational page.geA transaction value of USD 100,000 was billed as "contract size" or "contract size", while capital required; i.e. USD 1,000; referred to as "margin" (tolerance).

Suppose you perform a transaction valued at EUR 100,000 (one hundred thousand euro). Exchange rate EUR / USD when it says in the range of 1.30000 (one stage three), in other words: EUR 1 = USD 1.30000. That is, a transaction worth EUR 100,000 was equal to USD 130,000 (one hundred and thirty thousand USD).
But with leverage (1: 100), you simply need a capital of USD 1,000.