Online Futures Trading
Online futures trading is available for every person who is ready to take on the big profit-big losses world of commodities trading. While only registered traders can get on the floor of the well-known futures trading mercantile exchanges in Chicago and New York, online futures trading allows anyone to work directly with a licensed broker who can trade with the floor of these large markets. Doing business in this high stakes market arena is not for the faint of heart. With a sudden monsoon or a hurricane that wipes out a coffee crop or sugar harvest, millions of dollars can be lost overnight. Making that all a reality is the fact that trading in commodities is all accomplished by leveraging. Leveraging means that for example, a hundred thousand dollar buy or sell agreement can be made with just ten thousand dollars used as a margin.
Commodities are mostly the products that arise from the dirt of the earth. They are oil and wheat and sugar and bananas and corn and all the other products that can be mowed down by a hurricane or a tornado. They are also gold and silver and platinum and the other metals that are so important for world commerce. And in recent years, even interest rates are sold for both online futures trading as well as on the floor (the pit) of the mercantile exchanges. There is always a very high expectation in this high stakes world of commodities trading to make a lot of money, but Jesus would say to all those with a great desire for money: "For what shall it profit a man if he shall gain the whole world and lose his own soul, or what shall a man give in exchange for his soul?" (Mark 8: 36, 37)
There is a real art to doing business in the commodities market, and while there are simplified ways to explain the general way of how things are done, in reality it is much more complicated. But, here is a simplified scenario to explain online futures trading. Suppose a popcorn manufacturer is already looking three months down the line for the corn he will need for the next quarter's microwave popcorn market. The buyer sits in his Nebraska office and looks at the bushel price for corn now and sees that the price has risen ten cents in the past week to six dollars and ten cents a bushel. All indications are that a water shortage will cut the actual harvest and raise the prices more in the months to come. The buyer uses two hundred thousand dollars to place an online futures trading order for a little more than three hundred and twenty five thousand bushels of corn at six dollars and fifteen cents a bushel three months from the day of the trade. Should the price drop between now and then the buyer loses and the seller wins but if it rises above the $6.15 price, the seller certainly loses and the buyer gets to keep his job for a while longer.
When a person decides to do commodities exchanging online, there is the issues of deciding on which broker one will use. A number of brokerage houses have their own software packages that can be downloaded, enabling the potential buyer to view action directly from the floor of the mercantile exchanges with little or no delay. Delay time can be crucial when prices may be changing every few minutes, so makes sure you understand the delay time of the broker's software. It is not recommended under any circumstances that one try to begin online futures trading without having some extensive experience in mock or simulated trading exercises. Many of the online futures trading systems that a person can use do offer buying simulation practices and it is certainly a very strongly recommended thing to do!
Since a margin account enables a person to control at least ten times the amount of the actual sale, the risk factors are huge. A trader doing business in the commodities market will try and figure out his own personal trading system in order to make as much money as possible. It is a complicated business and there is no one "killer" or "deep secret" system. Everybody loses money at times, some people just make a little more than they lose. In any case, those who deal with commodities through the trading of futures must deal with technical and fundamental analysis of the markets. Some traders put their nose to the wind and base their buys or sales on the fundamentals. The fundamentals of market analysis have to do with guessing prices on what might be the weather and the availability of refinery capability at a certain time in the future, be it a few days or a few weeks or months.
The other side of online futures trading as well as the pit trading on the floor of the exchanges has to deal with the technical analysis of the market. The fundamentals guy is out in Iowa with his hand in the dirt smelling the wind to see if rain is coming, but the tech buyer is poring over charts and graphs and looking at forecasts not of weather but of market possibilities. While everyone has their own secret system that they will not share with anyone else, it is probably for certain that most systems are a combination of both fundamental and technical market analysis. A beginner to this high profit-high loss game will be dazzled by the many system options that he or she can buy and/or use. Go slowly, talk to experts and remember that most want to make money off your ignorance.
Commodities are mostly the products that arise from the dirt of the earth. They are oil and wheat and sugar and bananas and corn and all the other products that can be mowed down by a hurricane or a tornado. They are also gold and silver and platinum and the other metals that are so important for world commerce. And in recent years, even interest rates are sold for both online futures trading as well as on the floor (the pit) of the mercantile exchanges. There is always a very high expectation in this high stakes world of commodities trading to make a lot of money, but Jesus would say to all those with a great desire for money: "For what shall it profit a man if he shall gain the whole world and lose his own soul, or what shall a man give in exchange for his soul?" (Mark 8: 36, 37)
There is a real art to doing business in the commodities market, and while there are simplified ways to explain the general way of how things are done, in reality it is much more complicated. But, here is a simplified scenario to explain online futures trading. Suppose a popcorn manufacturer is already looking three months down the line for the corn he will need for the next quarter's microwave popcorn market. The buyer sits in his Nebraska office and looks at the bushel price for corn now and sees that the price has risen ten cents in the past week to six dollars and ten cents a bushel. All indications are that a water shortage will cut the actual harvest and raise the prices more in the months to come. The buyer uses two hundred thousand dollars to place an online futures trading order for a little more than three hundred and twenty five thousand bushels of corn at six dollars and fifteen cents a bushel three months from the day of the trade. Should the price drop between now and then the buyer loses and the seller wins but if it rises above the $6.15 price, the seller certainly loses and the buyer gets to keep his job for a while longer.
When a person decides to do commodities exchanging online, there is the issues of deciding on which broker one will use. A number of brokerage houses have their own software packages that can be downloaded, enabling the potential buyer to view action directly from the floor of the mercantile exchanges with little or no delay. Delay time can be crucial when prices may be changing every few minutes, so makes sure you understand the delay time of the broker's software. It is not recommended under any circumstances that one try to begin online futures trading without having some extensive experience in mock or simulated trading exercises. Many of the online futures trading systems that a person can use do offer buying simulation practices and it is certainly a very strongly recommended thing to do!
Since a margin account enables a person to control at least ten times the amount of the actual sale, the risk factors are huge. A trader doing business in the commodities market will try and figure out his own personal trading system in order to make as much money as possible. It is a complicated business and there is no one "killer" or "deep secret" system. Everybody loses money at times, some people just make a little more than they lose. In any case, those who deal with commodities through the trading of futures must deal with technical and fundamental analysis of the markets. Some traders put their nose to the wind and base their buys or sales on the fundamentals. The fundamentals of market analysis have to do with guessing prices on what might be the weather and the availability of refinery capability at a certain time in the future, be it a few days or a few weeks or months.
The other side of online futures trading as well as the pit trading on the floor of the exchanges has to deal with the technical analysis of the market. The fundamentals guy is out in Iowa with his hand in the dirt smelling the wind to see if rain is coming, but the tech buyer is poring over charts and graphs and looking at forecasts not of weather but of market possibilities. While everyone has their own secret system that they will not share with anyone else, it is probably for certain that most systems are a combination of both fundamental and technical market analysis. A beginner to this high profit-high loss game will be dazzled by the many system options that he or she can buy and/or use. Go slowly, talk to experts and remember that most want to make money off your ignorance.
Online Futures Trading
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