You have most likely heard someone on the topic of stability in the oil or gold as of the moment and they talk about her great potential in the futures trading. Perhaps you've heard about oil and gold, but you probably haven't heard of the word "futures" in the trade. Futures, in fact, is one of the must-learn if you want to learn stock trading and money. In plain words, futures means buying from "wholesale" merchandise in the stock market such as gold, crude oil, rice, Orange, wheat, etc., which will be delivered on a specified due date in the future, but at a price agreed at the moment.
To illustrate, you have purchased for each barrel of oil at $, (current price today) on 14 February that will be released on 14 June. In a week or so goes the value of oil per barrel to $ 97.48 which means you have benefited for a 10% or so, depending on if the price is firm will go higher. In some cases, depending on the raw material it may have crashed so you have no profits. But this is quite the underlying principle in futures trading, and you have an effective system for the trade you competently can predict the pattern of the market to stay away from any profit-loss.
Traders also make money by buying the raw material as is. In fact go almost all traders for offsetting or squaring the futures agreement prior to the deadline in order to avoid the date of delivery. Depending on someone's trading technique, you can decide to sell them when they arrive in a week or so to buy if you want its value will go down and you can not to make a profit. Another good thing about futures trading is that you can sell your goods before you buy. This would be very beneficial as the prices are all falling, you can decide to sell your goods first and they buy again, as long as it's not yet 14 Jun (for example, because the delivery date). If the price is at a low level when you bought it and went for the next day, you can earn a quick profit if you sell.
It sounds so simple and easy but traders usually apply their own personal trading strategy in order the price pattern a foretaste. When futures-trader buys a commodity they leverage it on their tolerance for risk assess-and also the amount of available risk capital. Perhaps you've heard about this earlier, and maybe even know what those apply risk calculations in their own personal lives. But the same with application in the trading market you need must be compatible with all your transactions. This is one of the principles in how to learn stock trading.
Many futures-trader trading platforms used in to help them in the price patterns such as NinjaTrader, AIQ, observe et cetera. But some traders use their own personal trading system, or questions from the experts to learn stock trading, risk calculation and effective trading system.
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