Understanding the Ins And Outs of Day Trading Futures Markets
Day Trading Futures Markets
The futures markets are available to every trader and are based on commodities (like gold and silver), currencies (like the US dollar and euro exchange rate), and stock indexes (like the FTSE 100 and NASDAQ). It also involves agricultural products (like wheat and corn), and unpredictable events including the weather (yes, you can trade futures based on snowfall).
Day Trading Futures Online
Online Futures trading can be extremely profitable and enjoyable for traders who trade with proven futures trading systems. This market has many benefits over other markets, in particular for the day trader. Some of the markets are available for trading 24 hours every day. Overall, the futures markets are typically heavily traded, which causes a large daily price range and a huge trading volume. The fluctuating market allows intraday buying and selling without any restriction which makes them ideally suited for effective day trading strategies and day trading software programs.
Futures Contracts Specifications
All futures contracts will have specifications that detail every portion of the trading information for the day trader. It will include the futures symbol, expiration date, exchange, tick value and tick size. In its totality, all these components can quickly identify the price movement and indicate a loss or profit potential. It is also used to configure futures trading systems along with charting software programs.
Futures Contract Expirations
Unlike stocks, bonds, or other trading instruments, a futures contract will only be valid for the specified length of time, at which point it will expire. Anyone developing futures trading strategies using futures trading software must update their charting software to reflect their accurate position in the next contract, also called a “roll-over.”
Many of the futures markets have open contracts which are valid for three months. Typically the expirations will happen in March, June, September, and December. There are specific futures markets that have contracts expiring more often or at different times.
While nearly every trading market has a foundation built on financial instruments including currencies and stocks, there are a few financial futures markets that have been based on a variety of things including weather events. In all, the futures market is an ideal way to work with your futures trading strategies.