Oil is the lifeblood of global economy. In the summer of 2008, crude oil prices jumped from around $60 to around $150 in just a matter of few months. Those hedge funds and savvy traders, who knew how to trade crude oil futures made a windfall in a matter of few months. This rise in crude oil prices is going to repeat itself in the near future. Enter the exciting world of futures trading. Suppose, you want to profit from the volatility in the crude oil market. You take a position in crude oil market by going long on crude oil futures. Suppose, you buy 1000 barrels of crude oil. Hey, can you keep 1000 barrels of crude oil in your garage! Definately not! You are just looking for an opportunity to profit from the crude oil prices not taking physical delivery of 1000 barrels of crude oil. The beauty of futures trading lies in the fact that you don't need to take physical possession of any commodity. You can keep the position open and close it in cash when your profit target is achieved or the futures contract is about to expire!
Have you ever thought about trading futures contracts? The average trader would be surprised as to the range of things that can be traded with futures contracts. As a futures trader, you can take opposing positions in gold and US Dollar futures contracts to take advantage of the opposing price moves.
As a futures trader, you can trade precious metals like gold, silver, platinum or palladium. You can also trade futures contracts on currencies like US Dollar (USD), Japanese Yen (JPY), Canadian Dollar (CAD), British Pound (GBP), Australian Dollar (AUD) and others.
You can trade metals like copper, aluminum, zinc, lead, tin or nickel. You can trade steel. You can trade grains futures contracts like wheat, corn, soybeans, bean oil, oats, rice, barley and others. You can even trade food and fiber futures contracts like coffee, sugar, cocoa, cotton, orange juice, lumber or others. You can trade meats like live cattle, pork, lean hogs and others with futures contracts.
You can trade plastics with futures contracts. You can trade energy futures contracts like crude oil, Brent Crude, natural gas, propane and others. You can trade financial instruments like Treasury Notes, Treasury Bonds, Munis (Municipal Bonds), Eurodollar, Bund ( German Government Bond), Euroyen and others. One of the most popular futures contracts are the Stock Index Futures like the S&P 500, Dow, E-Mini S&P, NASDAQ, FTSE, DAX and others. You can even trade futures contracts on individual stocks. There are even futures contracts on Hurricanes, home prices and even on things that you cannot imagine.
The main players in the futures market are the exchanges, speculators, hedgers and the regulators. The major futures exchanges are the NYMEX (New York Mercantile Exchange), CME ( Chicago Mercantile Exchange), CBOT (Chicago Board Of Trade), LME (London Mercantile Exchange), TOCOM (Tokyo Commodity Exchange) and the Eurex.
If you are a speculator who is looking for making a quick capital gain then futures trading is for you. As a speculator, you would like to profit from the market risk and volatility.
Ahmad Hassam
Mr. Ahmad Hassam has done Masters from Harvard. Discover a shocking Dow Futures Secret that can make you rich. Trade Crude Oil Futures!
Ads by Google
FOREX minimal deposit $10
Pro Finance Group inc, minimum risk Start you trader`s carrer on FOREX www.pfgfxlite.net
No comments:
Post a Comment