Trading in futures trading in future contracts. Commodity futures contracts are made, where the underlying commodities in the future at a fixed interest rate trading, normally in the current exchange rate. Such as stock trading, futures trading in certain markets, such as trafficking in centralized and Globex S and P.
Recently, a huge increase in the number of traders in futures trading. This can be many reasons as 1) the simplicity of the trade that virtually all done, the trade, 2) a high level of liquidity in the market due to the sheer size of the transactions, today, 3) the stability of its market compared to other, 4) slightly identify the underlying commodity itself - is a high-priced products 5 at a lower price on the date of conclusion of contracts) low fees in comparison to the underlying futures trading in shares, 6) the possibility of your home in order with limited Working Capital Trading, 7) low initial investment required, 8) the availability of mini-futures minimums and make less available with tight spreads and 9) the presence of a variety of underlying products on the market.
There are mainly two types of trading systems in futures contracts in a futures market that require physical delivery and require a cash settlement. The contracts with physical delivery requirements are as commodity futures and futures-known for agricultural products are rice, wheat, sugar, oats, energy, raw materials such as natural gas, crude oil, heating oil and other like animals, wood, etc., futures contracts, which required a cash payment to be known as financial futures and Treasury notes, bonds, mutual funds, etc.
Buying futures, commodity futures market will "go long" as the futures and the sale is known as "short" known. followed by the style of trading, online futures traders may be roughly divided into two are classified as hedgers and speculators. Hedgers are traders who trade for price certainty. Usually they are of the issuer of the futures, that this is possible for the losses from the actual time of the trade to address the underlying commodity. Speculators are the traders actually buy, hold and sell these contracts for the victory. Speculators include all types of businesses; arbitrage, day traders, swing traders and position traders.
Each futures trading require a broker or Futures Commission Merchant (FCM). A futures trading broker is an intermediary between the public employer and the futures market, the deposit to find a margin of dealers, acknowledged in a futures market traders trade. There are two types of futures trading broker, full-service brokers and discount brokers.
A futures trading broker is responsible for the records, closed the margin per customer deposits, open futures, cash balances, transaction, etc. To these services in the trading of futures brokers offer a fee that each broker. All these processes are regularly reviewed by the Commodity Futures Trading Commission (CFTC), the federal agency to protect against tampering, abuse, fraud and fraud in commodity futures trading.