01
ForexForex trading is an exciting way to make money in the world of finance. It’s the most active financial market in the world, with...
Read moreAnalyse the future market more closely in real time!
Futures trading has become increasingly popular among investors, providing them with the opportunity to buy or sell assets at a predetermined price at a future date. Futures contracts are utilised for a variety of purposes, including managing risk, expanding into new markets, and speculating on price movements.
Before diving into futures trading, it’s important to understand financial derivative trading. In simple terms, a derivative is a contract between two parties where the value of one party’s asset or liability depends on a specific event or circumstance that will occur in the future. This event can range from stock price fluctuations to more complex market changes like interest rates, commodities prices, or foreign exchange rates.
Essentially, futures contracts are forward contracts for commodities or currencies that are traded on global exchanges. They can be bought and sold at any time during their lifespan and are only settled when delivery takes place at a predetermined future point.
The strategy behind futures trading is to purchase assets, like stocks or commodities, at a low price from one party and sell them to another party at a higher price in the future. This strategy can be lucrative because asset prices tend to increase when there’s high demand and decrease when demand is low.
To be successful in futures trading, you’ll need to identify a seller offering stocks or commodities at a lower price and buy them, holding on to them until you can sell them at a higher price later on. The key objective is to maximise profits while minimising risk.
Some of the most popular futures trading options include commodities such as gold, foreign exchange, and stocks like Apple.
Futures trading is an excellent strategy for beginners. It’s a straightforward approach that can be executed with a modest investment. With a little research and practice, you too can take your trading game to the next level with futures.
Leverage your trading while receiving assistance from professionals. Set up a profile right away on one of our platforms!
OpenXTM markets
Would you like to invest in additional markets? Discover each market, then start trading!
If you’re looking to invest in a diverse range of goods and services, commodities trading might be just the right option for you. It is a...
Read more