An Example Of A Futures Trading Complany
'Going long' means buying a contract and 'going short' means selling a contract. Speculators include all types of futures traders you see around like futures day traders, futures swing traders, futures position traders etc.Futures trading are the trading of contracts called futures contracts, which provides the owner the power to trade the underlying commodity at somewhere in the future for a fixed rate. Futures trading is becoming more and more popular, this may be because of a lot of reasons such as; simplicity in trading enabling virtually any one to trade, more liquidity of the market due to the high volume of trades done each day, the stability of market as a result of high liquidity, price stabilization between markets mostly because of arbitragers, easy in owning underlying commodity product rather than looking for reduced price values, low transfer rates imposed by trading brokers, the easy to go short or long at any time, requirement of comparatively small initial investments, easy to set up an account and trade from home, availability of mini, standard or large futures contracts, and the availability of a variety of underlying products and commodities. Like stocks and options trading, futures trades are done in precise centralized futures commodity trading markets like Globex and S&P. In USA all these futures trading process is monitored by the federal agency Commodity Futures Trading Commission (CFTC). Simply speaking, a futures trading broker or Futures Commission Merchant (FCM). They include futures for treasury notes, mutual funds, bonds etc. Irrespective of the type they are responsible for maintaining trader records such as the trader's margin deposits, money balances, open futures and transaction completed. The two types of futures trading brokers are full-service brokers and discount futures trading brokers. Futures contracts are mainly of two types as commodity futures
