Basic Strategies for Trading Futures
Table of Contents The investment strategies for futures can be divided into three types based on the investment objectives of futures investors: The first is the standard buy-sell approach, the second is hedging, and the third is arbitrage. 1. Buy-Sell Approach The most commonly used phrase or “strategy” for investing and trading is; buy low […]
Trading US Futures
Futures Trading Hours Each futures product has different trading hours as per the exchange’s regulations. The primary trading hours for some of the major futures products like stock indices, currencies, interest rates, metals, energy, agricultural products, and meats on the Chicago Mercantile Exchange (CME) are as follows: Chicago Mercantile Exchange (CME) Trading Hours Stock Indices […]
The basics of a Futures contract
Table of Contents The most important information about a futures contract lies in its basic elements, which are typically reflected in the contract itself. These are the key points that we need to pay attention to when buying or selling futures. Basic elements of Futures contracts (Hover over or Click the images to view.) […]
Why trade Futures?
Table of Contents Futures, as financial derivatives, have more pronounced advantages and risks compared to stocks. Let’s take a look at both. Advantages High Liquidity The standardization and efficiency of futures contracts make the futures market highly liquid. Generally, the liquidity of the futures market is much higher than that of the spot market. […]
What are the major trading exchanges globally?
Global futures markets offer a wide range of diverse products. Major exchanges complement each other by providing futures contracts on commodities such as agricultural products, base metals, and major stock indices not available elsewhere. This variety allows investors to have multiple options. The liquidity of futures markets globally is strong, with over 20% of global […]
ABCs of Futures
Table of Contents In this introductory guide, we will explore some fundamental components that form the foundation of futures trading. In earlier chapters, it is noted that futures derive their value based on underlying assets (commodities or financial instruments). There are some other components that beginners should know about before attempting futures trading. Margin: There […]
What are futures?
Table of Contents What is Futures Trading? Futures trading, unlike spot trading, involves standardized tradable contracts based on certain commodities such as cotton, soybeans, oil, as well as financial assets such as stocks and bonds. The underlying asset of futures can be a commodity (e.g., gold, crude oil, agricultural products) or financial instruments. Futures have […]