1. Beginner's Guide To Trading Futures: Introduction
  2. Beginner's Guide To Trading Futures: The Basic Structure of the Futures Market
  3. Beginner's Guide To Trading Futures: Considerations Prior to Trading Futures
  4. Beginner's Guide To Trading Futures: Evaluating Futures
  5. Beginner's Guide To Trading Futures: A Real-World Example
  6. Beginner's Guide To Trading Futures: Conclusion

This guide provides an overview of how to begin evaluating and trading futures. Because the futures market tracks so many different assets, trading can be extremely complicated. It’s important that you thoroughly research and understand the market that underlies the futures contracts you are trading so you can make better trading decisions.

Also, futures traders have access to leverage, which can be a double-edged sword. Keep in mind, leverage magnifies your wins, but it also magnifies your losses. It’s important to use risk management techniques to minimize potential losses. It can be helpful to review the Futures Risk Disclosure Statement provided by your broker, which begins: “The risk of loss in trading commodity futures contracts and foreign currency can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.”

If you decide that futures trading is right for you, it’s recommended that you thoroughly research both the futures market in general and your chosen subsector of the market specifically. The more knowledge and experience you have, the more likely you are to become a successful futures trader.

 


Related Articles
  1. Trading

    Understanding Forex Risk Management

    There's risk in every trade you take, but as long as you can measure risk, you can manage it.
  2. Trading

    Beginner's Guide To Trading Futures

    An in-depth look into what futures are, and how you can build a solid base to begin trading them.
  3. Trading

    Futures Fundamentals

    This tutorial explains what futures contracts are, how they work and why investors use them.
  4. Trading

    How to trade Dow Jones future contracts

    Learn about the Dow Jones Index futures contracts available and obtain step-by-step instruction on how to trade the stock index futures.
  5. Trading

    Advantages Of Trading Futures Over Stocks (APPL)

    We look at the top eight advantages of trading futures over stocks.
  6. Trading

    6 Steps To A Rule-Based Forex Trading System

    Learn to add structure to your trading methods with these six important steps.
  7. Trading

    Learn How to Trade the Market in 5 Steps

    Learn how to trade the markets with skill and authority, starting with these five basic concepts.
  8. Trading

    Forex leverage: A double-edged sword

    Find out how leverage, a flexible and customizable tool, magnifies both gains and losses in the forex markets.
Trading Center