Futures Trading

Futures Trading
Futures Trading has a reputation for being one of the riskiest forms of trading and usually reserved only for experienced traders. However, with proper education this market can be immensely profitable.  

With Futures or Commodities trading you do not actually own anything that you are doing is speculating on the future direction of the price of a given commodity. You are basically wagering that the price will either go up (if you are a buyer), or it will go down (if you are a seller). 

 There are three types of traders involved in the Futures market, Hedgers, Speculators, and Floor Traders. The majority of those involved in this market are speculators, which is similar to standard stock trading in the sense that you're trying to make a profit from price fluctuations of the underlying commodity. 

When you speculate in a futures trade, there is always someone who is taking the opposite position, or betting against you. It's important to learn as much as you can about commodities and how to safely trade futures.


New Starbucks Construction Before NYCTN | New York City Trending Now

Comments

  1. Normally people with the commodity trading, speculates on the future direction of the price. It looks like betting with the future price and the words "purchase" and "vend" purely point out the way we anticipate the upcoming values. I believe Futures Trading is different than others.

    ReplyDelete

Post a Comment