Tag Archive | "Futures"

Quick And Simple Facts About Futures Trading

Quick And Simple Facts About Futures Trading

The first thing that you have to know about futures trading is that this is different from the trading that happens on the stock market. It is sort of speculating the future prices of the commodities that you will be trading.

The known locations where this kind of trading happens include the following.

1. New York Mercantile
2. Chicago Board of Trade
3. New York Cotton Exchange
4. Chicago Mercantile Exchange

As for the futures markets, here are some of the most popular that are being traded these days.

1. Currency trading.

This is widely known as the FOREX that stands for the foreign exchange. This involves the process of buying and selling whatever currency the trader chooses to bet on. The trader will study the movement of the economy of the countries where the currencies come from. This way, they will be able to strategize whether they are gambling on a good investment or if it will be better to wait for some time before trading in. Some of the well-known currencies that are being traded on for this purpose include the British Pound, Japanese Yen and the US Dollar.

2. Agriculture.

This actually has a broad scope. This will all depend on the crops that the farmers grow and the people who are interested with such. For example in the case of wheat, a farmer will sell the futures of his crop if he thinks that its price will go down before he could even harvest it. But if a bread manufacturer thinks that the prices of wheat will rise before its harvest, he will decide in buying its futures.

And that is only an example. There are many crops and produce that this department can produce. Aside from wheat, the popular ones that are being traded in the markets include corn futures and soybean.

3. Energy Futures.

Just by hearing what this is called, you will know that this kind deals with the likes of gas and the oil futures. The market for this one has got to do with anything that fuels and lights up people’s lives.

4. Interest Rate.

This center of this type revolves not only with interest rates but also with bonds and other kinds of financial transactions.

5. Foods.

Were you surprised to hear that this can also be traded? The well-known in this arena are those commodities that have value and are popular to many such as sugar, coffee as well as orange juice.

6. Metals.

This is actually known and is becoming more and more popular through the years. The most common materials being traded for this sector include the kinds of metals like silver and gold.

Now that you have gained such insight, the next thing that you have to do is to continue researching about the kind of trade that you want to venture into. You must never tire out from educating yourself in this regard. This will be your ally as you go on in the process. You must never enter into any transactions without fully understanding the risks that you will be up to and how are you going to earn in the process.

Futures trading can be beneficial once you know how to move to the groove. It may be a rocky start. But once you find your strengths and your movement, you can then proceed with the more complex part of the matter. As you go along, continue learning through your own as well as other people’s experiences. This can result to success and improvement with regards to strategizing.

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Investing In Futures Trading

Investing In Futures Trading

Futures trading can be an attractive investment option for some people. It is a type of investment where investors try to take advantage of trading futures contracts. These are contracts that are made by producers of a certain commodity with a dealer which involves the obligation of delivering a certain amount of a certain commodity for a specified period of time in the future. The commodities that such futures contracts trade can include grains such as wheat, corn to other produce such as lumber, livestock, cattle, coffee and even orange juice. There are also futures contracts for precious metals such as gold, silver and platinum.

What makes futures trading quite attractive is the high level of investment leverage that it offers. Investors can invest just as little as ten percent of a futures contract’s value in order to have the opportunity to trade it. This allows investors to trade futures contracts using lesser investment capital for trading larger valued contracts.

Futures contracts usually have standardized amounts of the commodity that they involve. For example, if an investor holds a future contract for wheat, he usually holds a value worth 5,000 bushels. Trading the contract would be dealing based on the value of the 5,000 bushels of wheat.

Although futures contracts only require a fairly small investment (usually ten percent of the contract value, known as the margin), investors should still think before taking or buying a futures contract. Beginner traders should first try to establish that they can afford to trade such a contract. Traders should consider if they have enough margins to cover the contract as well as if they have what it takes to trade and deal a sizable move in prices that can go against their position.

It is also important that beginner traders try to establish a system of risk and reward when trading for a particular commodity. There are many factors that may affect the position of the trader in different futures contracts since they can involve a variety of commodities. Traders should have a good idea on how to handle their position in order to make money in futures trading. A good way to do this is to establish a stop loss feature on traded futures. This simply means that the investors establish a certain price range wherein the contracts may stop trading in order to preserve profits from the trade or to minimize the possible losses.

Beginner traders should also consider spreading their trading from a variety of commodities instead of only dealing on one. If one has the capital to afford in trading five futures contracts, it would be wise to have the contracts involve a variety of commodities. This way the risk may be spread over a varied number of commodities, thereby providing a more or less stable position when one of the commodities suffers a decrease in price value. Dealing with only a single commodity in this case can considerably increase the possible losses.

Beginner traders should only try to risk about five percent of their tr5ading capital on futures contracts. The reason for this is because, one can also easily lose considerable capital in futures trading. It is wise for traders to only invest the amount that they are prepared to lose.

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Commodity Futures Trading – Why It’s Not For Average Investors

Commodity Futures Trading – Why It’s Not For Average Investors

If you don’t mind losing ,000 inside 10 minutes, you might enjoy trading commodity futures contracts. There’s an aged saying amidst commodity traders: “It’s simple to create a little fortune inside commodities. Simply begin with a big fortune!” This really is not a company for individuals that are emotionally connected to their cash, yet thousands of average “investors” receive lured into the commodity markets year following year. Why? Because of the possibility of generating excellent percentage gains utilizing the built-in leverage which is accessible to commodity futures traders.

The commodity markets include wheat, corn, soybeans, pork-bellies, gold, silver, heating oil, lumber, plus many additional well-known trade products. The big businesses which work inside these markets employ commodity “futures” contracts to lock inside their marketing costs for the product ahead of time of delivery. This practice is known as “hedging.” On the additional side of which transaction is the trader, that speculates about whether the priced of the commodity might rise or down before the contract is due for delivery. Because futures contracts can be bought utilizing leverage, these financial instruments lend themselves to speculation.

For instance, control of the corn contract value ,000 could just requrie 0 of actual cash, or 10% of the face value of the contract. If the corn rises inside value, as well as the contract becomes value, state, ,500, the speculator has created 0 about their authentic 0, for a 100% return. Compare this with all the normal stock marketplace, that limits leverage to 50%, thus which ,000 value of stock demands a minimal of ,500 of capital. If the stock rises to ,500 inside value, the 0 gain is against ,500 invested, for a return of “only” 20%. The 100% return certain looks a lot greater, appropriate?

You can see why investors looking for fast gains are hypnotized by the lure of big income utilizing maximum leverage inside commodity futures trading. The real problem, though, is the fact that the leverage functions inside BOTH DIRECTIONS. You are able to lose a whole investment inside a matter of minutes due to the wild cost gyrations which often happen inside these volatile markets. Let’s state the ,000 contract drops to ,000 inside value rather of improving. You’ve not just lost the authentic 0 we place into the contract, nevertheless an more 0. You are able to go broke fast this means.

So why do folks play this game? Average investors never awaken each morning plus state to themselves, “Right, I think I’ll commence trading commodities.” What happens is, they get the sales pitch from a commodity trading “guru” declaring to have a “system” for generating sure-fire income inside these wild markets. These “systems” range inside cost from all technique as much as ,000 or even more, plus are available based found on the promise of “big profits” from a tiny beginning investment.

Newsletter writers or commodity gurus frequently pitch the myth regarding turning ,000 into a million bucks inside lower than a year. The typical commodity program pitch comes inside a lengthy sales letter or booklet which describes a system for winning about “9 from 10″ trades or synonymous inflated claims.

Needless to say, when it was potential to correctly trade 90% of the time, a individual may conveniently amass millions of $ inside a surprisingly brief time period. So why are these men thus eager for we to invest 5 about their super-duper trading course? Because they possibly aren’t creating any real revenue with their own trading system! There’s much safer cash to be prepared marketing others found on the idea of getting into commodity futures trading.

There is not a sure-fire method to consistently create funds inside these markets, because the underlying commodity costs will swing wildly back plus forth depending about a complex set of factors, several of that are totally unpredictable. That’s why truly the only folks consistently generating funds inside the commodity markets are the brokers, that gather a commission for executing the trade whether it wins or loses.

There are moreover a few of effective specialist traders that create a living inside these markets. However the big most of individuals that dabble inside commodity futures lose income. Unfortunately, with all the lure of big returns plus convenient revenue, a fresh crop of innocent traders enters the marketplace every year, just to be instantly fleeced from their revenue.

Don’t be 1 of them! Leave commodity futures trading to the experts plus stick to the more boring types of investment, like mutual fund investing or stocks plus bonds.

Posted in Gold MoneyComments (0)

New Instrument for Futures plus Options’ Traders

New Instrument for Futures plus Options’ Traders

Oil dominated amount about HedgeStreet last week because primitive costs dropped 5.01% to close at .76. Investors question an OPEC manufacturing cut. Wholesale fuel plus currencies were active too. The dollar was up 0.68% from the euro, closing at .2595/€, plus up 0.75% up against the yen, closing at ¥119.01/$ . The yen�s weakness continues to surprise, incredibly provided the finish of the effortless funds plan by the Bank of Japan earlier this year. Stocks rallied to record degrees. The Dow shut at 11850.21. Bonds sold off sharply about Friday with all the 10-year yield up 12bp to four.70%. Gold plummeted four.38% to close at 2.40. All these changes are advantageous information for the U.S. economy. Energy is getting cheaper that offsets housing weakness plus boosts business earnings. Lower gold costs will augur tamer inflation upcoming year. Investment is coming into U.S. stocks, increasing the dollar. Long expression rates stay low. Freddie Mac releases 30-year mortgage composite about Thursday; HedgeStreet binaries stop trading about Wednesday. CHF plus CAD today trade intra-day.

This week: Virgin threatens to cancel Airbus380 orders; earnings from GE, Pepsi, Costco plus McDonald�s; FCC votes about telecom mergers; plus U.S. customs stops seizing cheaper Canadian drugs found on the edge despite the reality imports stay illegal.

ECONOMIC RELEASES THIS WEEK

Tuesday: Wholesale inventories expected at +0.7%, with sales racing ahead this the inventory-to-sales ratio at low 1.15 months. Treasury budget expected at a -55bn excess with receipts running 12% year-on-year, expenditures at 8%.
Wednesday: Crude inventories plus FOMC minutes.
Thursday: Initial Claims expected at 311K. Trade balance expected at -.5bn, off the July record of -bn; a strong rebound inside exports expected.

Friday: Retail sales expected at 0.2%, ex-auto at 0.0%, lower due to lower fuel costs. Autos have a possible to surprise to the drawback.

STARBUCKS 40,000 … PETSMART�S HOTELS … CHICAGO TO EAT MORE MEAT

Starbucks announced a objective of 40,000 coffee stores, up from 12,000 today. I am about 3 lattes a day; I don’t think I will handle five… PetSmart may work inside its shops 850 animal hotels catering to 110m U.S. homes with dogs (63%). For a evening, pups could enjoy TV, lambskin blankets plus day care escapades. 5 billion individuals found on the world wish they had it because superior because U.S. dogs. That fence might sure stop immigration … The CME plus Deutsche B�rse talked regarding a possible tie-up. The Germans were impressed with Ferris Buhler�s lederhosen plus his rendition of Danke Sch�n, Auf Wiedersehen? The merger makes no sense, plus God knows Chicago doesn�t require more German food …

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Look at Outside Markets for Gold Clues – Technically Speaking w/ Jim Wyckoff

Gold prices are up, reaching 2.5 month highs amidst bullish "outside markets", and silver is up as well, experiencing an upside technical breakout early in the week, also on the back of bullish "outside markets". So what more can be gleaned from these outside markets which seem to be having such a drastic effect on metals prices? Kitcos technical analyst Jim Wyckoff attempts to answer that for us in todays episode of "Technically Speaking". Jim explains why he believes gold is nearing an upside technical breakout, much like the one seen with silver prices earlier in the week, and gives us his market ratings and expectations for the metals in coming weeks. Kitco News, August 21, 2012.

Posted in Gold PriceComments (2)

Smart Trades Update 7.1.12 S&P 500, DJI, Euro, Gold, Crude Oil, Futures Trading Tutorial

More frequent reports at www.smarttrades.com Foreducational purposes only. No claims of profitability for any systems or methods posted. Smart Trades Update 7.1.12 S&P 500, Dow Jones Industrials, Euro, Gold, Crude Oil, Futures Trading Tutorial, Elliott Wave Technical Analysis, Stock Market Timing, Alternative to Prechter, Stock Market Crash 2013? More frequent reports at http For educational purposes only. No claims of profitability for any systems or methods posted. Entire publication © Smart Trades Inc. 2011 All rights reserved. All Charts & Quote Pages in this publication made with Omega Trade Station (r) 8 This post is for educational purposes only. TRADE AT YOUR OWN RISK! NOTICE: Traders can and do lose money. No claims are made that the information provided here will insure gains or prevent loses. TRADE AT YOUR OWN RISK. All support, education and training services and materials in this post are for informational and educational purposes only. No type of trading or investment recommendation, advice or strategy is being made, given or in any manner provided by Smart Trades Inc. or its affiliates. NOTICE: Neither the information, the systems, nor any opinion expressed herein constitutes a representation by Smart Trades Inc., or a solicitation for the purchase or sale of any commodity futures, other securities, or options of any kind. Those using the information and systems herein for trading purposes are responsible for their own actions and no claim is made that the <b>…<b>

Posted in Gold Market UpdateComments (6)

Smart Trades Update 7.1.12 S&P 500, DJI, Euro, Gold, Crude Oil, Futures Trading Tutorial

More frequent reports at www.smarttrades.com Foreducational purposes only. No claims of profitability for any systems or methods posted. Smart Trades Update 7.1.12 S&P 500, Dow Jones Industrials, Euro, Gold, Crude Oil, Futures Trading Tutorial, Elliott Wave Technical Analysis, Stock Market Timing, Alternative to Prechter, Stock Market Crash 2013? More frequent reports at http For educational purposes only. No claims of profitability for any systems or methods posted. Entire publication © Smart Trades Inc. 2011 All rights reserved. All Charts & Quote Pages in this publication made with Omega Trade Station (r) 8 This post is for educational purposes only. TRADE AT YOUR OWN RISK! NOTICE: Traders can and do lose money. No claims are made that the information provided here will insure gains or prevent loses. TRADE AT YOUR OWN RISK. All support, education and training services and materials in this post are for informational and educational purposes only. No type of trading or investment recommendation, advice or strategy is being made, given or in any manner provided by Smart Trades Inc. or its affiliates. NOTICE: Neither the information, the systems, nor any opinion expressed herein constitutes a representation by Smart Trades Inc., or a solicitation for the purchase or sale of any commodity futures, other securities, or options of any kind. Those using the information and systems herein for trading purposes are responsible for their own actions and no claim is made that the <b>…<b>

Posted in Gold Market UpdateComments (6)

Smart Trades Update 7.1.12 S&P 500, DJI, Euro, Gold, Crude Oil, Futures Trading Tutorial

More frequent reports at www.smarttrades.com Foreducational purposes only. No claims of profitability for any systems or methods posted. Smart Trades Update 7.1.12 S&P 500, Dow Jones Industrials, Euro, Gold, Crude Oil, Futures Trading Tutorial, Elliott Wave Technical Analysis, Stock Market Timing, Alternative to Prechter, Stock Market Crash 2013? More frequent reports at http For educational purposes only. No claims of profitability for any systems or methods posted. Entire publication © Smart Trades Inc. 2011 All rights reserved. All Charts & Quote Pages in this publication made with Omega Trade Station (r) 8 This post is for educational purposes only. TRADE AT YOUR OWN RISK! NOTICE: Traders can and do lose money. No claims are made that the information provided here will insure gains or prevent loses. TRADE AT YOUR OWN RISK. All support, education and training services and materials in this post are for informational and educational purposes only. No type of trading or investment recommendation, advice or strategy is being made, given or in any manner provided by Smart Trades Inc. or its affiliates. NOTICE: Neither the information, the systems, nor any opinion expressed herein constitutes a representation by Smart Trades Inc., or a solicitation for the purchase or sale of any commodity futures, other securities, or options of any kind. Those using the information and systems herein for trading purposes are responsible for their own actions and no claim is made that the <b>…<b>

Posted in Gold Market UpdateComments (6)

Smart Trades Update 7.1.12 S&P 500, DJI, Euro, Gold, Crude Oil, Futures Trading Tutorial

More frequent reports at www.smarttrades.com Foreducational purposes only. No claims of profitability for any systems or methods posted. Smart Trades Update 7.1.12 S&P 500, Dow Jones Industrials, Euro, Gold, Crude Oil, Futures Trading Tutorial, Elliott Wave Technical Analysis, Stock Market Timing, Alternative to Prechter, Stock Market Crash 2013? More frequent reports at http For educational purposes only. No claims of profitability for any systems or methods posted. Entire publication © Smart Trades Inc. 2011 All rights reserved. All Charts & Quote Pages in this publication made with Omega Trade Station (r) 8 This post is for educational purposes only. TRADE AT YOUR OWN RISK! NOTICE: Traders can and do lose money. No claims are made that the information provided here will insure gains or prevent loses. TRADE AT YOUR OWN RISK. All support, education and training services and materials in this post are for informational and educational purposes only. No type of trading or investment recommendation, advice or strategy is being made, given or in any manner provided by Smart Trades Inc. or its affiliates. NOTICE: Neither the information, the systems, nor any opinion expressed herein constitutes a representation by Smart Trades Inc., or a solicitation for the purchase or sale of any commodity futures, other securities, or options of any kind. Those using the information and systems herein for trading purposes are responsible for their own actions and no claim is made that the <b>…<b>

Posted in Gold Market UpdateComments (6)

Mid Day Market Update for 08/20/12

AET, LOW, AAPL Visit our website at www.wallstreettrading.com and sign-up today for your free trial of MyWallSteetTV, today! Listen to us trade the markets in real-time as we help coach you through trades and generate some killer ideas. WallStreetTrading Youtube Channel:www.youtube.com Follow WallStreetTrading on Twitter: twitter.com Follow WallStreetTrading on Facebook: www.facebook.com Virtual Trading Floor: mywallstreettv.com Password: smart Email Channel Guy Trader at: ccooper@wallstreettrading.com Website: Channel Guy Trader Twitter: Askchrishetrade Wall Street Trading is a proprietary trading consulting firm based in New York City. Combining four decades of experience in capital markets, Wall Street Trading collaborates with its clients to help them become profitable traders. We take pride in the level of support afforded to our customers from the onboarding process through regular operations. Wall Street Trading partners with several CBSX member trading firms to affording our customers the best support, most competitive rates and payouts. Wall Street Trading welcomes remote online day traders and trading groups as well.

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