• Trade Now

Online Futures Trading

Written by ForexCult Team
Rate this item
(0 votes)
Online Futures Trading When it comes to online futures trading there is a risk involved like there is with all trades that take place online. It doesn’t matter if it is trading equities, trading options, trading commodities, trading futures and also trading forex. However, the greater the risk that is involved the better chance that you will have to gain profit from the trade. You should also know that trading commodities as well as futures contracts will actually entitled you to make a large amount of earnings or profits as well as the chance that you may suffer from big losses. Keep in mind that there is not one successful trader that is in the market that has not actually suffered from a loss at one point and time. However, the reason that the trader was able to be successful was because of the fact that he was able to minimize the occurrence and also the amount of loss by actually following what is known as strict online futures trading principles. Online Futures Trading and a Futures Trading Plan As you know, money is one of the essential that you needs for online futures trading, however there is more essential that you will need when it comes to the online futures trading and that is a futures trading plan. There are some things that you should base your online futures trading plan on as well. You should make sure that your online futures trading plan is created by your very own anticipated style of actually trading futures. You are also going to want to make sure that your online futures trading plan is also based on your present economic status as well as the futures of interest. Your online futures trading plan is also based upon the capital that you are interested in investing as well as your actual experience of trading the futures as well. When it comes to online futures trading, it is important that you keep in mind that by investing small amounts, you may be limiting your options when it comes to your loss minimizing practices and you should also know that by investing higher amounts of money you are inviting higher losses and this is especially the case if you are a beginner in the market. Most of all, you should remember that no matter how good you are at trading and at depicting your styles, your investment should not in no way affect your living standards that you have presently. Four Basic Principles of Online Futures Trading It is important that you know like all traders, the traders of online futures and future commodity, have to actually follow the four basic principles of trading. The following are the four basic principles of futures trading, the first one is managing your risks, the second one is minimizing your loss and the third one is trading with a trend and also letting the profit that you make run. An intricate process that actually gets a little better with the right amount of trading knowledge on the trader’s part is known as managing your risks. This particular rule involves a lot, in fact it includes trading mini contracts, and also be able to avoid what are known as extremely volatile trading markets, not to mention paying very close attention to the surprise reports as well as to the global trend, and the last thing that it involves is preserving money for profits that you will make in the future as well. However, you as the trader need to keep in mind that actually reducing the loss is the actual hardest rule that you can try to practice. This involves actually quitting a trade when the market takes a turn away from your own predictions. That is why it is important that a trader practices so that they are able to make decisions that are right and so that they can avoid those loses that could be the outcomes of these decisions. When it comes to trading with the trend, this process actually includes entering and also quitting the trading market at certain times. You will notice that the trend that you decide to follow is based on your trading style. It is known that day traders follow what is known as hourly trends whereas on the other hand the position traders actually follow what is known as weekly monthly trends. When it comes to the fourth principle, the action of letting the profit run actually includes maximizing the utility of the future market with what is known as an upbeat trend.

Add comment

Currency converter


Which is the Best Forex Broker you have traded with?

Interview with Matthew Sheppard

Senior Forex Advisor at XForex

1. What is your name and position?

Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.

2. What is your experience and professional background?

In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.

3. What type of clients you deal with?

We deal with clients on all levels from the beginning stages to the more advanced trading levels.

4. Does most of your business activity come from the online or offline world?

Because of our high presence on the web, most of our business comes from the online world.

5. Why should a trader pick XForex from all forex brokers?

Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..

Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.

6. From your experience, what advice would you give a person who wants to enter the forex world?

My advice to the beginning trader entering the Forex world is as follows:
  • Learn the market and understand what you’re getting into.
  • Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
  • Invest smartly and calculate your risks.
  • Always know when to get out of a trade.

Broker of the Month

5_small_logoUFXBank provide up-to-date charts and news feeds, coupled with an easily navigated trading platform. UFXBank traders can access the biggest market in the world 24 hours a day with ease.

By keeping their platform, site and deposit process simple, safe and secure, UFXBank have become the web’s premier online forex trader.