Some Basics of Futures Trading
But the difference lies in What You Are What You Are Buying and selling. In futures trade, Unbreak Actually one in a contract to buy or sell assets Un certain price in future SI decides But at the time of making contract. Whereas, When we buy or sell stock, We Are Actually BUYING or selling the stock now. Let us Understand the concept of futures trade in detail: Futures Trading: It is a type of financial Contracts in Which two parties enter Into Agreement to buy or sell particular assets for future delivery at DECIDED Currently rate. It is Basically BUYING seller of Things of Which Has Not Produced at particular rate. Basically it is speculating and hedging of Risk Rather Than actual exchange of physical goods. Therefore, it only futures dealing is Not Ruled by the buyers and seller Rather by speculator as well. This practice of trading is risky and liquid Extremely. At one stage one dog make small investment and revenue from Other Stage at one Can Be looser. The process of this trading is very complex and Difficult to Be Understood by ordinary people. Assets of trading: The asset of trading Can Be Both physical commodities and Financial Assets. Physical commodities include agricultural commodities, livestock & meat, energy, precious metals, rare metals, industrial metals, minerals, Environmental commodities, etc. Financial assets sold in futures trade Currencies Can Be, securities and intangible assets. Types of futures traders: THERE ARE two major types of futures traders: hedgers and Speculators. Are manufacturer of commodity hedgers and September deal to Protect Them from Frequent change of prices. Beside physical commodities, banks, insurance companies, mutual funds, pension funds, etc. Also fall in the hedger’s frame of trading. Speculators Are Autonomous traders and Investors Who Enter Into Agreement On Their strong prediction to generate revenue from future Contracts. Some facts about futures trading are? Market Movements Are too complex to predict precisely. Prices and trend varies marginally and frequently. These Are The Basics of Futures trading. One Can Easily get learn the basic facts about this trend of trading easily. People Interested in this dog invest money trading. One dog broker Who Have Also keep complete hold in the field. The Risk of loss exists in futures trading. Past performance not is indicative of future results.