Learning futures trading - Futures trading has several differences in
comparison with other trading. These differences that would be a tremendous
attraction will trade futures. As you will know the term of "two-way
opportunity" and "leverage". which may not be what you get in
the form of trading financial instruments in general. In fact, in trading the
stock will be very difficult to find.
 |
| Learning Futures Trading for Beginners |
Two-way
opportunity
Prices always move dynamically. More interestingly, in
futures trading you may be able to utilize two-way direction price movement is
up and down. You can still find opportunities to good advantage when the price
is moving up or down. The important thing is that you have to take a position
(transactions) unidirectional with the price movement. In the world of trading,
often known by the term "two-way opportunity".
Here's
to clarify the scheme.
By the time you estimate prices to go up, then you can to
take a position to open transaction "Buy" or often also called the
position "Long". If your analysis is correct, if the price moves
higher, then the greater the advantage you get.
So
what if before you estimate prices to move down?
If you estimate the price of a commodity trade will go
down, then you can take a position to open transaction "Sell" or
often called "Short". If your analysis is right, then the greater the
advantage you get when commodity prices fall.
So
what if the price drops after you take the position of "Buy" or
prices rise after you open a "Sell"?
 |
| prices down |
If that happens, of course, you will lose. That is why
every transaction must go through the process of analysis first. No less
important is the "trading plan" and "risk management". If
you are able to master these things. Then you will be able to optimize
opportunities and as well as minimizing the risk. these things you will learn
more in this educational page.
 |
| rising price |
Leverage
Maybe it's a new term for you?
If you are confused, let us discuss what is the leverage?
An example: imagine if you want to replace your tires
have leaked. Sure to replace car tires, should slightly increase of the
distance of your car body with the ground, would be very heavy if you are doing
with your bare hands. However, if you use a tool called a car jack. You can
Easily increase of the body of your car, without great power you are Able to
lift the body of the car to change the tires of your car is leaking.
 |
| Leverage |
it,approximately about the workings of the
"leverage". with relatively small capital. You could able to conduct transactions with capital a
much larger.
Leverage applied is 1: 100 (one-appeal-one hundred). If
you want a transaction with a value of $ 100,000 dollars, then you pretty
prepare capital as big as of $ 1,000 dollars. So the conclusion you only need a
capital of 1:100.
The value of transactions with a value of USD 100,000
dollars in called "contract size". While capital is needed namely USD
1,000 dollars in called with "margin".
Suppose you want to perform a transaction with a value of
EUR 100,000 (one hundred thousand euro). Exchange rate EUR / USD at the time
said the range 1.30000 (one point three). In other words EUR 1 = USD 1.30000.
which means, transactions with worth EUR 100,000 the same with USD 130,000
dollars (one hundred and thirty thousand USD). However, with the leverage of 1:
100 you just need a capital of USD 1,000 dollars only.
