Wednesday, April 13, 2011

Basic strategies to trade CFD on futures

Futures trading receive if to properly many results for individual investors. The important strategies in mind to keep if investments in futures trading is the following:



1. be long: If the investor expects to increase the price of the product in the future, he buys a futures contract on this product. It is also known as Bull speculation. If the price of the product actually increased in the future, the investor can make a profit from it.



2. you go short: in contrast to go long, short, this situation occurs when the investors expected prices were certain to go in the future. So he sold the Treaty were covered. When commodity prices, actually decreases in future, this investor to realize a profit. On the other hand, if the prices fall or go for the article are, the investor sold losing a contract.



(3) the future of distributed: This means and buy a contact and the sale of another contract at the same time. An investor can hold it, if he wants to make a difference in the price and thus covers both types of contracts. This difference can be used by the investor.



4. managed accounts: there are many investors who opt for the managed accounts in futures trading contracts. If someone to do, it powers to Sam, on its own address. Account Manager, you buy and sell contracts for actual investors, now he has the power to do can. It is an agreement between the investor and account manager (SAM), on power-account-manager. An investor can or can give power of Attorney Internet Accounts Manager. It was found that the investor must deposit more money in a managed account as a single account. This is important for the person who has decided that a managed account with the account manager is good as it can be obtained from investors gains or losses. In addition, you test all of the services and their costs before the signing of the agreement.



5. Trade consultant: there is another tool with investors in futures trading. Expert advisors are individuals or companies, to provide advice to investors. Usually, they recommend actions such as purchase or sale of different products for investors from their expertise, experience and knowledge of the market. You inform investors of the product is long or short product will be. Based on the recommendations by investors, it would decide whether they want to work with trade advisors. It is important to note here that not account managers are herumgeschleppt. There are just the recommendations of the investor.



Choose between these different instruments for profit and avoid losses in futures trading.

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