Scott Warner Futures Trading
'Going long' means buying a contract and 'going short' means selling a contract. Hedgers are the issuers of futures contracts, doing so to tackle the risk of low price at the actual product delivery time. Like futures contract, futures traders can also be grouped into two large categories as Hedgers and Speculators. 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. Commodity futures contracts are contracts which end with a cash settlement. They include futures for treasury notes, mutual funds, bonds etc. They include agricultural commodity futures like rice, sugar, wheat, oats, soybeans etc; energy commodity futures like heating oil, crude oil, natural gas, etc; metals & stones like gold, silver, diamond etc; and others such as animals, wood etc. 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.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. The initial capital investment changes according to the type of the contract you are trading, to the method of trading you follows and to the account features of futures trading broker. The two types of futures trading brokers are full-service brokers and discount futures trading brokers. In USA all these futures trading process is monitored by the federal agency Commodity Futures Trading
