Futures trading is a trading category where traders can tender any particular stock at a specific price for a future date. In the year 1972, the first futures contract was negotiated for agricultural commodity which later came into practice for various sectors such as Stock market, Currency, Interest rate etc.
“The original use of futures contracts was to mitigate the risk of price or exchange rate movements by allowing parties to fix prices or rates in advance for future transactions. This could be advantageous when (for example) a party expects to receive payment in foreign currency in the future and wishes to guard against an unfavourable movement of the currency in the interval before payment is received.” (Source Wikipedia).
How Futures Trading is Different from Other type of Trading
Unlike various other type of trading where one can buy or sell based on the current price, in futures trading you can fix the price in advance keeping in mind the future prospect of a particular commodity or stock. Based on the current market scenario one can always understand whose price will go up and whose will come down and futures trading provides you the advantage to trade on those. Energy sector is one of the most progressive sectors whose demand has increased consistently from the past and it’s no secret that this sector is going to improve further keeping in mind the demand of energy is increasing exponentially. With Futures trading, you get the advantage of trading in such a sector at a future date.
Which are the Technical Indicators Beneficial for Futures Trading
There are 4 main types of trading indicators:
- Trend: Trend provides with the strength and direction of price movement
- Momentum: Momentum mainly indicates the rate of change of price movement
- Volatility: Volatility is a directionless measure of the amount of price movement
- Volume: Volume helps you measures the strength of a trend and checks its direction
Indicators also fall into 2 categories:
- Leading: Leading provides with signals regarding the start of a market movement
- Lagging: Lagging gives signal on confirmation about start of market movement
Advanced Futures Trading Course
Online Advanced Futures trading courses can help those who want to learn and practice Futures trading. There are a lot of different online stock trading courses are available in the market which teaches about the Futures trading and how to leverage the knowledge to become a successful trader. Advanced online stock trading courses are designed for diverse category of audience and have different style of teaching. TYK Trade provides the best advanced futures trading course which is designed for everyone. TYK Trade has experienced professionals who themselves are trading in the market for more than a decade and they make Trading curriculum fun by introducing various live case studies, demo and examples.
- Who can benefit from TYK Trade’s Futures trading course?
- Those who are investing or trading in the stock market
- Those who are interested in trading in stock derivatives specially Futures
- Those who are planning to take up stock trading as a profession or career
- Those who invest in shares but would like to progress to derivative trading and hedging
- Students of finance, commerce and business
You can get a glimpse of TYK Trade’s tutorials in the Video section:
Building a Strong Portfolio
- To build a strong portfolio, you need to understand all of the concepts, indicators and technicalities of Futures Trading.
- Opt for the course from TYK Trade and you can start building your portfolio.
- Understand and observe different stocks and commodities etc. that you want to trade in and with the help of different indicators and market movements, you can select a list of stocks or commodities which you find comfortable or suitable to trade.
- Prepare a trading strategy based on the knowledge and information from advanced futures trading course and start trading with the help of your strategy.
- People often panic when they see that their strategy isn’t working the way it should in the short term or a sudden movement in the market took place, you need to be patient and have to trust your strategy.
- You need to be focused and not bother about any tips or ideas coming from others, they might not be an experienced trader or their strategy might be little different from you, ignore those and move ahead with your plan.
- Making profit doesn’t mean that you do not suffer any loss, your total trades averaging the profits and losses from your entire portfolio determines the success of your strategy and accomplish you as a successful trader.