Futures Day trading is the process in which future contracts are bought and sold on the same day. Proper knowledge, discipline and experience are very important things that a futures day trader must have. In the future market every day has its own specification and that influence the market parameters like the tick size and the symbol, a lot. The market price and the trading volume are very high, as the future trading is considered to be the active trading markets. As future trading does not include any regulations it becomes preferable in US markets.
Future markets include under lying instruments along with good liquidity and price movement. The fundamental instruments are currencies, stock indexes and commodities. Future trading can happen both in up and down direction, so if there is the chance that the market is going upwards then one can opt for the long trade and buys a contract and sells it while moving out. If a trader wants the market to move downwards, then he should enter the short trade. Here the trader has to enter by selling a contract and exit by buying it.
This same process is repeated in the case of multiple contracts and in such cases separate entries and exits are done for each of them. For the particular trading market you need to follow a same number of entries and exits. The best thing of the future trading is that this trade moves in both directions. So, the traders get more profit though they do not care for the direction.
The future trading system mainly includes agricultural products like coffee, wheat, fruit, cotton, and rice and commodities like FX, energy products, and real estate.
Symbol, exchange, tick size, value and expiration date are some of the important future contract specifications. To understand the current market and contract this exchange symbol and expiration date will help jointly. With the help of tick size and value you can identify the price, profit and loss potential.
The validity period of future contracts is particular and when that period gets over the traders have to update the software for the next contract. The future contracts come with 3 months validity which ends in the month of March, June, September, and December. Though there are some exceptions like some of the future trades will expire more frequently. In the market profiles, you will get the complete contract specifications for the popular future trades.
Another advantage of future trading is the facility of not holding overnight and the traders get free from open position worries. It does not take much time to learn about the future markets.
You have to be very patient and disciplined when you want to have a very successful day trading futures. Be careful for Day Trading futures otherwise you will meet heavy loss.
In closing, remember a futures day trading plan will provide you with a foundation to beginning your trading career and is not something that should be taken as a joke.
Bill Thompson has been talking about emini day trading for several years now. Many have discovered a great deal about his futures day trading recommendations over the years.
Source: http://www.nanothailand.org/day-trading/what-you-must-know-about-the-future-day-trading
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