This is a great article on futures trading.

Futures Trading – A Beginners Guide To Trading Futures

What is Futures Trading? Futures’ trading is a form of investment which involves speculating on the price of a commodity rising or falling.

What is a commodity? Most commodities you see and use every day of your life:

• the corn in your morning cereal which you have for breakfast,
• the lumber that makes your breakfast-table and chairs
• the gold on your watch and jewelry,
• the cotton that makes your clothes,
• the steel which makes your motor car and the crude oil which runs it and takes you to work,
• the wheat that makes the bread in your lunchtime sandwiches
• the beef and potatoes you eat for lunch,
• the currency you use to buy all these things…

… All these commodities (and dozens more) are traded between hundreds-of-thousands of investors, every day, all over the world. They are all trying to make a profit by buying a commodity at a low price and selling at a higher price.

Futures’ trading is mainly speculative investing, i.e. it is rare for the investors to actually hold the physical commodity.

If all this is a bit over your head, and you’re looking for a solid day trading strategy, I suggest you join me on one of my live webinars by clicking here.

What is a Futures Contract?
To the uninitiated, the term contract can be a misleading however the term is used because a futures investment has an expiration date. It is similar to other forms of short-term contract. You don’t have to hold the contract until it expires. You can cancel it anytime you like. In fact, many short-term traders only hold their contracts for a few hours – or even minutes!
The expiration dates vary between commodities, and you have to choose which contract fits your market objective.

For example, if today was June 30th and you think Gold will rise in price until mid-August. The Gold contracts available are February, April, June, August, October and December. As it is the end of June and this contract has already expired, you would probably choose the August or October Gold contract.

The nearby (to expiration) contracts are usually more liquid, i.e. there are more traders trading them. Therefore, prices are a true reflection of trading activity and less likely to jump from one extreme to the other. But if you thought the price of gold would rise until September, you would choose a back-month contract (October in this case).

Nor is there a limit on the number of contracts you can trade. Many larger traders/investment companies/banks, etc. may trade thousands of contracts at a time!

All futures contracts are standardised in that they all hold a specified amount and quality of a commodity. For example, a Pork Bellies futures contract (PB) holds 40,000lbs of pork bellies of a certain size; a Gold futures contract (GC) holds 100 troy ounces of 24 carat gold; and a Crude Oil futures contract holds 1000 barrels of crude oil of a certain quality.

A Short History of Futures Trading
Before Futures Trading, a producer of a commodity (e.g. a farmer growing wheat or corn) could find himself at the mercy of a dealer when it came to selling his product. The business of transacting between producer, agent and end-use needed to be legalised so that specified amounts and quality of product could be traded between producers and dealers within a specified time-frame.

Contracts were drawn up between the two parties specifying a certain amount and quality of a commodity that would be delivered in a particular month…

…Futures trading had begun!

In 1878, a central dealing facility was opened in Chicago, USA where farmers and dealers could deal in ‘spot’ grain, i.e., immediately deliver their wheat crop for a cash settlement. Futures trading evolved as farmers and dealers committed to buying and selling at a specified time in the future. For example, a dealer would agree to buy 5,000 bushels of a specified quality of wheat from the farmer in June the following year, for a specified price. The farmer knew how much he would be paid in advance, and the dealer knew his costs.

Not too long ago futures markets consisted of only a few farm products, but now they have been joined by a huge number of tradable ‘commodities’. As well as metals like gold, silver and platinum; livestock like pork bellies and cattle; energies like crude oil and natural gas; foodstuffs like coffee and orange juice; and industrials like lumber and cotton, modern futures markets include a wide range of interest-rate instruments, currencies, stocks and other indices such as the Dow Jones, NASDAQ and S&P 500.

Who Trades Futures?
It didn’t take long for businessmen to realise the lucrative investment opportunities available in these markets. They didn’t have to buy or sell the ACTUAL commodity (wheat or corn, etc.), in order to trade the price movement of a commodity. As long as they exited the contract before the delivery date, the investment would be a simple trade. This was the start of speculation in the futures markets, and today, around 97% of futures trading are speculative by nature.

Andrew Baxter is one of Australia’s most highly regarded trading and investment educators. Andrew is also a co-founder and facilitator of the Elite Traders Group, Day Trading Mastery and various other educational programs aimed at leveling the playing field between professional and private traders.

For More Information About Andrew’s Free Educational Webinars and Resources, please visit the Elite Traders Group Website: http://www.EliteTraders.com.au

Article Source:http://www.articlesbase.com/day-trading-articles/futures-trading-a-beginners-guide-to-trading-futures-821956.html

Forex Questions and Answers

Is it best to use my guard to trade currency money or a website such as www.forex.com?

I am not just talking about 1 time currency adapt, im talking about doing it frequently should i do my trading with the hill or another source would be better? It’s better to use a Forex broker. This kind of…

How polite are those FOREX trading tips providers?

I would like to start doing forex and I found some “forex trading/tips providers”. They basically analyze market background and trends, and send you tips of what is “likely” to happen in the souk as soon as they see an opportunity,…

Contact numbers for the forex agency the one sending bundle to the Philippines.
Where is nearest location for the forex agency where I can call to for if I want to send a collection going to the Philippines? You should in the 1st place mention where you are from, but I think you are referring to…

Where can I cram more nearly Forex?
I’d like to learn Forex trading, I need to know what skills are required, logical jargon, how a positive or negative occurrence contained by the economy will affect any certain currency pair and I’d really prefer to swot this free since…

How can I acquire the best forex platform?
They’re all pretty much the same. All the big guys look at each other and copy their features. If you hold a good trading plan, you can make money with anybody. A fruitless plan will not be helped by a different…

Tips for a topical forex trader
Read the Wall Street Journal, they always talk about currency. keep a eye on world events, and hang on to an eye on gold price. Finally monitor interest rates around the world, as they can impact a value of a…

What is the best style to trade Gold on forex if i live surrounded by Australia?
Obviously, buy cheap and sell for more! The profit potential comes from the fluctuations (changes) in the currency exchange market.The nice piece about the FOREX market, is that regular daily fluctuations, enunciate – around 1%, are multiplied by 100!

Forex (Foreign Exchange Place/Market)?
Do they ever accept checks? How do they work? Would appreciate any answer! Yes,they do accept it,try fxcm.com

Can’t find forex live classes that aren’t scam?
I want to start taking forex classes at a school or a college but every class I find it is just seminars where on earth they show u boats and houses and they say that could be u if u sign…

Forex Rollover
Can anybody explain what rollover fees are in Forex? I know they are the differences in overnight rates, but I still don’t understand them. I saw a chart that have different values for each currency pair, why are some…

Forex help out

I want to learn forex. Is there any books/cd/dvd you can recommend for me? something that would help me know when to trade and become conscious market movements etc… thanks I would recommend http://www.freeforexebook.org and http://www.forextopten.com/forex-articles.html as free…

Can one kind a serious living beside FOREX?
One can. Some do. The vast majority don’t. Trading currencies and options on currencies is extremely complex and risky. It’s an interesting field, definitely. It requires the most extreme knowledge of current events, geopolitics, advanced economics,…

Forex question?
When I open an forex account of $1000, does it mean that I own to use leverage in order to start a trade, because the minimum amount that you can trade is 0.1 lot. Also, what is the 10 most important…

Anyone trade the forex?
If you do, you’ll know what it is. For more information on trading the forex check out www.forexscamcheck.com has everything you will need to start in a few minutes !

Is it correct for one to trade surrounded by currency forex offline (from Bank to Bank)?
Would like to find out if individuals conduct offline currency trading from one bank to another with a scenery to make profits. I would like to do that personally given the income potential it have (am a student). What it means…

What is a flawless free Forex information site. Not really prime teaching but report and info?
You will find mass amounts of information on the Internet about Forex. Just search the terms you are looking for and you shall receive. Is at hand one thing in particular that you are looking for? Forex Traderhttp://www.forexnewstrader.com …

What’s the best strategy to use surrounded by forex currency trading?
Currently, I’m betting EURvsUS for the long run but I want to know if u can refer me to a page where I can learn more about scalping and other strategies, I’m using oanda.com fx activity for practice , in the process…

Is Forex trading not valid surrounded by India?
Is Forex Trading not valid in India? You can trade forex in India, as well as any other country. Many forex trading platforms are Internet base and all you need is a way to deposit money which is usually done…

A hedging strategy for forex?
I would like to know a simple hedging strategy for forex. I’m new to forex, I got a demo depiction right now, but I’m losing money. What’s a good strategy, and what’s a simple way to know which direction a currency…

Sound out something like FOREX?
I am thinking about getting in to forex since the usd is so bad sour right now..i never did it before but in a nutshell anything over the usd and i would profit or nogratitude Forex to newbies is like…

In Forex, what is the fundamental different between demo justification and live details?
Is it true we also can monetize from opening a demo account? I only want to undo a demo account, so can I profit from it? Demo account lets you practice trading technique and strategy minus risking money. No you…

What is the most critical financial websites for stock & forex trading?
The websites that their news affects on prices in stocks and forex.name 2 or 3. Here is a short schedule of websites I regularly frequent when researching a forex trade:http://www.reuters.com/ (the latest in general news)http://finance.yahoo.com/ (good for charts)http://www.bloomberg.com/ (the best…

What factor influence the spot and forward exchange rates within the forex marketplace?
Basically an understanding of what goes behind the decision of selecting to go for a spot rate of exchange or a forward rate of exchange. They depend on the interbank interest rates of the 2 currencies at the time of the…

Which forex broker that use metatrader platform and adopt PayPal?
I would run away from a broker that accepts paypal. There’s not a single regulated broker that accepts paypal.

How can we buy RMB/CNY within forex.com or other places?
I want to invest in RMB/CNY, where can I get them? I tried forex.com, but it seem like they do not provide RMB/CNY.It is only a practice account though.

More Forex Questions Please visit : RunAsk.com

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Article Source:http://www.articlesbase.com/day-trading-articles/forex-questions-and-answers-891531.html

Common Currency Trading Questions And Answers

Currency trading is an old business, but very profitable now. Never before has the average Joe been able to make trades along side the biggest and most profitable banks. I’m often asked questions and here they are with my answers… Read more…

Discover 10 Important Questions and Answers to Succeed in Forex Trading

Many forex traders blame the forex market when they lose, or even the online courses or books, but it is never their own fault. Success in currency trading can only be brought by you, and accepting full responsibility is a must…Read more…

Finding the Right Forex Training

Forex training is a very lucrative endeavor, if you know what you are doing. If you do not, then it is extremely important that you get some training before beginning. Day trading itself is becoming incredibly popular, both as a full time career and as a way for many people to earn a little extra money in these tough economical times. In order to understand what you need to look for in a good Forex training course, however, you need to understand this type of training itself first.

For instance, the term Forex is actually an abbreviation for the Foreign Exchange market. It is where trading for currency takes place on an international level. It is perhaps the most important trading market to be found anywhere and is the stock market of choice for a great many traders.

In order to get into this trading of this type, however, you do need to get a fair amount of Forex training. Going into the market without any experience is the best way to lose quite a bit of money. When you consider the sheer amount of free training which is available, it does not make any sense to go into trading without any form of training. With a simple search on the Internet, you should be able to find a training course perfect for you. For your convenience, there is plenty of online Forex training as well. You simply need to know where and how to look, and you need to make sure that you are getting the right kind of training. That is, you want to learn Forex training from an expert, someone who is experienced both in day trading and in trading specifically on the Foreign Exchange market.

A lot of people make the huge mistake of believing that they do not need any training whatsoever to start trading. Others make the mistake of thinking that just because they find a free Forex training course or an online Forex training course, it is not any good. Neither of these assumptions are true. Just because a course does not cost any money does not believe it is bad. It simply means that you do not have to pay for the knowledge you attain, and what is so bad about that? Furthermore, you cannot ask for better than finding a good training course online. The convenience factor alone is worth the effort here.

You can get a lot of money by trading on the Forex market. True, you may not become a millionaire over night, but you can still supplement your income by quite a bit.

The economy is such that a lot of people are looking to do this, and that is perfectly fine. In fact, it is even recommendable. However, you should never underestimate the importance of a little Forex training before you begin. After all, this is your money we are talking about. There is absolutely no reason you should risk losing even a little bit of it when you do not need to do so.

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Article Source:http://www.articlesbase.com/day-trading-articles/finding-the-right-forex-training-875797.html

Free Forex Training – The Truth Behind It

Looking for the best free forex training out there? Well if that is the case, you should know that the best training is never free. A lot of traders have this miss conception that there is good training out there that is free. Who do you think is going to have the better of the two, someone offering you a training guide for free, or someone that is selling their training system like hot cakes?… Read more..

Looking for a Forex Course in Dubai  – Why not have a look at the ForexYard online forex training course.

• Their risk-free demo account is designed to get familiarised with trading software, as well as test your knowledge and strategies under real market conditions.

  You will receive the same real-time quotes and charting as our live traders, but without the risk of market exposure.

• The free trading tutorial will introduce you to the basics of the forex trading and is a great place to start if you are new to the market.
• For more information on this course click here.

Here are the latest rates for Forex Exchange Dubai …

Forex Brokerage House in Dubai

Direct Broker for Financial Services joins NASDAQ Dubai | Market …
CPI Financial, established in Dubai in 1999, was born to meet the needs of an ever expanding, increasingly sophisticated financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking & financial … International Forex, International General Insurance Company Ltd. International General Insurance Holdings Limited, International Group Brokerage, International Holdings Group LLC (IHG) – Financial Services Division <…   Read more…

Forex Trading can be done from anywhere, all you need is online access to the internet and the right software for trading currency online. There are a number of different systems available so just make sure they will meet your requirement before investing a large amount.  If you are new to forex trading then its a good idea to start with an easy to understand system like ForexYard.

Singapore Foreign Exchange Rates