There is no doubt that there is a massive lack of understanding and awareness of what futures trading is all about! We will give a bit of an insight about futures trading, what all it entails and even more importantly, why everybody should consider being knowledgeable about this amazing wealth creation tool!
On the outset, let me be very clear this site can’t possibly address all aspects of the full subject, it is as best a basic information overview!
Technology has developed to the extent that each and everybody, regardless of where they are situated in the world, if they have a computer and an internet connection, they can partake in the global economy!
This of course makes this incredibly powerful - just for a minute imagine if you were able to make profit of the world demand for let’s say crude oil, just think how this will change your life!
As you are reading this page, you might have very little understanding of how this works, and before you read below, an overview of the basic mechanics – let’s be very clear futures trading as this site is referring to, is allowing EVERYBODY the ability to invest in the global economy, whether you wish to trade in Gold, or any other commodity, or shares or forex trading, it really makes no difference, the point is over the last few years thousands of people all around the world took note of this massive opportunity and they took the trouble of learning how to do it themselves and they have reaped a massive financial reward being FINANCIAL FREEDOM!
As one reads about and investigates this opportunity understand it is all about learning and mastering an investment skill, and then being able to invest in the global markets, in no other way, as financial institutions make vast fortunes.
Fact is you can do the exact same! If you are going to take action and in what you are ready right now, you can secure the rest of your life financially!
Financial independence and financial freedom is a sure end result if you are prepared to learn this skill and master this skill!
So before we go onto the basic overview, take massive action to changing your finances right now by filling in the form to receive our newsletters, this will allow you to receive loads of FREE information about this incredible opportunity!
Futures and options exist on common stock indexes as well as a large number of individual stocks. Futures and options on currencies, agricultural products, energy products and foreign securities also trade.
Forward contracts came into existence as a means for merchandisers to guarantee the sale and price of goods before they were transported to their destination.
The Chicago exchanges developed currency futures in the early 1970s to offset a constantly decreasing volume of trade in agricultural futures.
Initially financial professionals in New York did not believe that these new products would create sufficient interest in the financial markets.
However, the volume of futures and options trading grew to rival the volume of stocks on the NYSE ( New York Stock Exchange )
Futures markets are important for several reasons:
- Fluctuations in interest rates, currency values, and stock market prices cause severe problems for financial planning and forecasting. Futures markets are a tool to help alleviate these problems.
- Money managers employ financial futures as risk management tools to significantly reduce the potential losses of a cash position.
- Futures provide speculators a degree of leverage that is not typically available with other instruments, and thus allow speculators to change their risk profile.
Futures are very popular for hedging to control risk. Futures provide a more effective and flexible alternative to adjusting the return and risk characteristics of a cash position.
A futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity for a price agreed today with delivery occurring at a specified future date.
- The buyer expects the price is going to increase while the seller expects the price to decrease.
- The underlying asset to a futures contract may not necessarily be a commodity. The underlying asset can be currencies, securities or financial instruments.
- The futures exchange acts as intermediary and minimize the risk of default between the parties.
- The exchange would require from both parties to put up an initial amount of cash, referred to as margin.
- The exchange will then draw money from one parties margin account and deposit it into the others account so that each party has the appropriate profit or loss.
- Both parties of a futures contract must finalize the transaction on delivery date.
Futures are very popular for individuals to trade online.
Needless to say when trading on line in futures there is no delivery of goods!
The overview hopefully gave you a very basic insight into this incredible world of futures trading, just remember it is all dependent on your own skills and knowledge and know how!
If you want to find out more of where to find a reputable source to learn the skill from, in YOUR area or you want to know more about futures trading make sure you fill in the form and subscribe to our free newsletter list TODAY! In fact do it right now and you will get free access to some video’s I have put together that will give you much more insight into how this all fits together and how this can in fact change your life forever!