Posts tagged ‘Futures trading’

Have you heard of futures trading? From day trading to positions trading, many people trade in the futures markets. There are also futures options where traders trade an option contract which is directly related to the underlying futures market.

What exactly are they trading? Future commodity trading is not like the stock market where people buy shares of a stock. You do not actual own anything. You are just speculating on what the price will be of a commodity in the future. Continue reading ‘The Basics of Futures Trading’ »

Have you heard of futures trading? From day trading to positions trading, many people trade in the futures markets. There are also futures options where traders trade an option contract which is directly related to the underlying futures market.

What exactly are they trading? Future commodity trading is not like the stock market where people buy shares of a stock. You do not actual own anything. You are just speculating on what the price will be of a commodity in the future. Continue reading ‘The Basics of Futures Trading’ »

Before even looking at futures trading software, it is important to understand just exactly what it means to trade in “futures”. Today’s futures market is exciting and is something that is found all around the world. To be successful at futures options trading requires that you to know something about future options. The concept is easy to grasp and basically is composed of a “put” option (giving you the right to sell at a set price) and a “call” option (giving you the right to buy). The futures market is complex and it consists of buying and selling commodities such as coffee, cotton and oil. It obligates the buyer or the seller to buy/sell the specific commodity at a predetermined future price and on a specific date. Trading in futures occurs at centralized stock exchanges that are very volatile and often contain auction style trading pits. Futures market traders must post good-faith margin deposits with a member firm. The exchange member firm then deposits it with the exchange.

Continue reading ‘Explaining Futures Trading Software’ »