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.
Dija futures is a type of trading stocks. To trade Dija you need an account with a registered commodity futures broker who can provide training on how to use the system.
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.
First of all, you need to have a futures trading account with your local futures broker. After that is in place, it is a simple matter of going long on the nifty futures when you think the market is going to go up and going short when you think the market is going to go down.
Day trading 101 is the basics of buying and selling stocks. Anyone who is just starting out in day trading would benefit from day trading 101. It would be very beneficial to them.
To buy a futures contract, you need to open a trading account with a brokerage firm, deposit funds, choose the specific futures contract you want to buy, and place an order through your broker. The contract represents an agreement to buy or sell a specific asset at a predetermined price on a future date.
The advantages of futures trading, according to "Online Futures Trading - Advantages and Disadvantage" by Tim Wreford: Leverage. Futures operate on margin, meaning that to take a position only a fraction of the total value needs to be available in cash in the trading account. Commission Costs. Electronically traded futures contracts require no human intervention to match buys and sells unlike a traditional futures pit. This means that commission costs can be cut dramatically, leading to significant savings for the frequent trader. Liquidity. The involvement of speculators means that futures contracts are reasonably liquid. However, how liquid depends on the actual contract being traded. Electronically traded contracts, such as the e-mini's tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread. Ability to go short. Futures contracts can be sold as easily as they are bought enabling a trader to profit from falling markets as well as rising ones. There is no 'uptick rule' for example like there is with stocks. No 'Time Decay'. Options suffer from time decay because the closer they come to expiry the less time there is for the option to come into the money. Futures contracts do not suffer from this as they are not anticipating a particular strike price at expiry. Automated trading. Electronic futures brokers offer the facility to programmers to interface directly with their trading software. This means that custom written trading software can automatically trade a strategy without any human intervention at all. A system can make buy/sell signals which are automatically routed to the exchange along with any stops and targets. Almost instant fills. With electronically traded futures there is no need to call up a broker and wait for a fill from the trading floor. Orders are instantly placed on the electronic order book and filled as soon as a match is found - for liquid contracts such as the emini S&P500 this will be within a second. Level playing field. With traditional pit traded futures the professional in the pit has a major advantage over the retail trader in terms of speed of execution and costs. Electronic futures trading offers all participants exactly the same advantages.
In addition to the software for the trading platform, you may also have to set up data feeds for real time quotes from the various exchanges. You will also need to have appropriate trading accounts opened depending upon the products (futures, commodities, stocks etc.) that you intend to trade.
You can get advice on how to get started in commodity training on the website wallstreetdaily.com. On this website, there is an article titled Commodities 101: Tips and Tricks from a Former Exchange Floor Trader. In this article, they tell you the basics that you need to know and how to get started trading commodities.
Time decay refers to the gradual reduction in the value of a futures contract as it approaches its expiration date. This can impact traders by reducing the potential profit or increasing the potential loss on the contract. Traders need to be aware of time decay and factor it into their trading strategies to minimize its negative effects.
To make money with Forex futures one would need to have knowledge of stock and futures tradings. One should also have a good understanding of investing futures and stocks. Money to make investments is also needed.
Basically, you buy (go Long) on a futures contract when you think the underlying asset is going to go up and you go short on a futures contract when you think the underlying asset is going to go down. When you go long or short on a futures contract, you only need to pay a small deposit (typically about 10% of the price of the underlying asset) known as the "Initial Margin". Winnings are added to your margin daily and losses taken from it. When your margin drops to a level known as a "Maintenance Margin" due to losses, you will receive a "Margin Call" to top up your account back to the initial margin level. You can close off (offset) your futures position at anytime in order to cut loss or take profit. For more details on how futures trading works, please refer to the link below.
First, you need to know what options is in the first place. Options is extremely complex. Its not like stocks where you simply pick your favorite stocks and start trading. There are a ton of things to understand in options trading before you are ready to place your first trade. I suggest you read the following Options Trading Basics Tutorial at http://www.optiontradingpedia.com/options_trading_basics.htm .