Futures markets allow investors to buy a set amount of a commodity at a set price on a future date. Oil futures are a major market, with hedgers and speculators involved. Hedgers use the spot market and futures market to minimize risk, while speculators bet on market movement to make a profit. Futures markets are […]
To become a discount futures broker, pass the Series 3 exam, register with the NFA, and secure a position with a brokerage agency or establish your own business. Sponsorship is an option, and passing the National Commodity Futures Exam is required. Register with FINRA and the NFA, and job search to become a discount futures […]
Silver futures are contracts to sell a specific amount of silver at a fixed price in the future. Investors can also invest in silver funds, but should be cautious due to the volatility of the commodity. Proper strategies like hedging and diversification can mitigate risk. When people talk about “silver futures,” they are talking about […]
Emini futures trading involves investing in financial products based on commodity prices, with little capital required and often trading more like stocks. Traders use tools to limit risk and can consolidate investments in a single emini futures instrument. Emini futures trading is the practice of investing in emini futures products that mimic the price rises […]
There is no single best futures trading strategy, and it’s important to consider factors such as trading capital, available time, and personal preferences. Backtesting can help evaluate mechanical systems, while discretionary traders may need training. The trader’s edge and biggest loss should also be considered when evaluating strategies. Ultimately, the trader must choose a strategy […]
Futures are a financial derivative obliging the seller to provide an asset to the buyer on an agreed date. They are traded for commodities and financial instruments. Futures trading has a long history, with the first known contract recorded in ancient Greece. Exchanges play a vital role in standardizing contracts, but futures trading carries significant […]
Gold futures are contracts to buy or sell gold at a future date, used by producers to hedge against market fluctuations and by speculators to make money. Margin trading allows for large gains, but also risks large losses. The gold futures market is heavily invested but can be risky. The gold futures market is one […]
The Commodity Futures Modernization Act resolved a dispute between the SEC and CFTC over the definition of commodities. It allowed for the trading of individual stock futures, which had characteristics of both commodities and stocks, and were popular in European markets. The OneChicago Exchange is now the primary market for these products in the US. […]
Futures markets allow investors to buy a set quantity of a commodity at a fixed price on a future date. Oil, corn, and gold are the largest futures markets. Hedgers and speculators are involved in oil futures, with hedgers using both the spot and futures markets to minimize risk, while speculators bet on market movement […]
Beginner traders can benefit from paper trading futures contracts to gain experience and understanding of the market players and specific commodities. A good paper trading program with critical tools and resources can help, and focusing on technical results rather than emotions can lead to success. Those who want to trade futures can benefit from some […]
A futures spread is a combination of related futures positions that aim to make money based on the price relationship between a combination of positions while reducing risk. They generally consist of positively correlated legs, but can include legs that move in opposition to each other. Futures exchanges offer a lower hedge margin to hold […]
Silver futures are contracts to sell a specific amount of silver at a fixed price in the future. Investors can use them to speculate on silver prices, but they are risky due to the volatility of commodities. Other alternatives include silver funds and ETFs. Correct strategies such as hedging and diversification are necessary for successful […]
Emini futures trading involves investing in financial products based on commodity prices with little capital required. Unlike traditional futures contracts, emini futures can be traded on various exchanges and have fewer restrictions. Traders use tools to limit risk, and emini futures have a low margin, making them accessible to a wider investor community. Emini futures […]
Futures trading systems analyze commodity markets and use futures contracts to trade. Different types of systems attempt to capitalize on market conditions, including long-term, short-term, day trading, spread trading, and seasonal trades. Technical and fundamental analysis are used to develop these systems. Investors should research a system’s track record before investing and consider developing their […]
There is no single best futures trading strategy, and it’s recommended to implement multiple strategies simultaneously. Traders should consider their capital, available time, and personality when choosing a strategy. Backtesting is important for mechanical systems, while discretionary traders should focus on practice. The trader’s advantage and potential losses should be evaluated using mathematical expectation. Trading […]
