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Futures contracts were designed as hedging tools for commodities trading where the buyer and seller can secure a fixed trading price in the future in order to hedge against price fluctuations.
Today, futures trading is used for both leverage and hedging.
Futures trading enables you to trade directional leverage as much as ten times. This means that by buying futures instead of the stock or commodity, you could make ten times the profit on the same move. However, leverage cuts both ways. You could lose up to ten times as much as well.
For more about futures trading, refer to the link below.
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What is a commodity future trading system used for?
A commodity future trading system is used for trading commodity shares electronically and automatically. The system alerts the user when they need to buy or sell.
When did Future Trading Act happen?
Future Trading Act happened in 1921.
What is commodity trading or exchange?
commodity trading is the trading of primary products on exchange. spot trading and future trading of comodities are done to take advantage of difference between current and future prices.
How can one get train up about future trading strategy?
One can get "more information" about future trading strategies from the following sources: Investopedia, trading futures, united futures, trade to freedom, price group, future trading secrets.
What are the definitions of Commodity Trading and Future Trading online?
Commodity trading involves the trading of goods or commodities in the present time. Future trading is when the trade is set up in advance, and carried out at a later date.
What are some Index Future trading strategies?
Some of Index Future trading strategies are Changing the Beta of a Portfolio, Stock Index Arbitrage, Program Trading,Designated Order Turnaround and Computerised Trading.
Where can one find information on future Forex trading?
One can find information on future Forex trading from Easy Forex, ETX Capital, Forex Factory, Investing and Vantage EFX websites. Future forex trading is investing today in the hope of profiting from the investment in the future.
What is an FX future in relation to trading?
In relation to trading, an FX future refers to a currency, or foreign exchange future. This means that one is trading on what the price of a certain currency will be at a certain date and time. This is typically done with US currency.
What kind of education does one need to become a future trading broker?
There are a large variety of different qualifications that one needs in order to become a future trading broker. This education include, but is not limited to, a high school diploma and a college degree that deals with economics.
What future trading systems are available?
There are quite a number of future trading systems available. Some of the best options for this are InteractiveBrokers, OptionsExpress, and TDAmeriTrade.
What places offer a course in commodity future trading?
Most universities will offer a course in commodity future trading. Your local community college will probably have a class on commodity future training.
What are the basics that need to be understood for futures trading?
One of the basic that needs to be understood for futures trading is that it can be a very risky business. It is the buying and selling of commodities in the future. The prices are usually fixed at the time you enter into an agreement.
