How to operate in the futures market? – genxfxtrader

How to operate in the futures market? – genxfxtrader

The futures market is accessible to all, however you need to have a solid derivatives to treat these financial products knowledge. Trading in the futures market is simple, it is not so succeed in the forecast if you want to speculate, or make arbitration of prices due to strong competition and high technological sophistication that is responsible for finding inefficiencies in the price. 

To operate in the futures market, like any financial product
the convenience MiFid test must be carried out ,open a securities account at the appropriate intermediary and be clear if it is to perform a speculation, arbitrage or hedging. Futures contracts are standardized on underlying. In addition to hiring a future we are determining a price at which we will be given if we are bullish or bearish if we deliver a particular asset at a certain date (expiration date).
Speculation operations are performed when an agent wishes to take the price change either upward or downward, so that positions in the futures market by buying or selling one or more contracts on a particular underlying asset.
Hedging transactions seek to reduce risk or even neutralizewhen we have a diversified portfolio of underlying assets or when we have only one active and wish to neutralize the risk running out to have some losses and profitability. 

At present there are
numerous
computer algorithms managed by powerful computers looking for inefficiencies in price to arbitrate in case a price disparity same futures contract between different markets (eg future action listed in Spain occurs, Germany and the United States). 

These operations
seek to buy in the market where the contract has a lower price and sell the contract on the market that has a higher price until the price is aligned and then close the positions in both markets. 
With a futures contract we can perform operations speculation or coverage they are the most common. To do this we must know that there are two types of contracts for future delivery and for physical differences (which are the most common).

When speculate future,
we can apply both bullish and bearish strategies, short term and long term even open and close positions on the same day. So we can protect potential losses with orders Stop Loss because the types of orders futures contracts are the same as with other listed assets. 

In the above chart we can see what happens if we
buy or sell a futures contract when the underlying trading at 11,100 points. 


11,000


Got a misprint had to be trading at 11100 as your graphics


hug


Fixed, thanks for the correction and apologies.

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