Wednesday, 11 May 2016

Key Aspects of Futures Trading - Money Classic Research

One of the most frequently practiced ways of trading is stock future trading. This type of trading is based on future contracts. Future contracts are contractual agreement between the two parties. One of the parties is who sell the contract and the other who buy the contract. This contract to buy or sell the stock or commodity at a determined price for future is the future contract. This type of trading is called stock future trading. The person who trade or invest in the market by agreeing for these standardized contracts is called future traders.

 There are many technical analysts who get confused between future market and forward market. Theoretically, both the future market and the forward market are executed in the similar manner. Equally, the markets allow a trader or investor to buy or sell the stocks at a definite time at a specified price. However, the only difference between the two markets is that the future market is regulated by the Exchanges, which is standardized.  Whereas, the forward market is a private contract between the two parties and are not standardized. These types of contracts are flexible in terms of rules and regulations.

There are many indicators and oscillators used in stock future trading to gauge the market trend. Trading strategy is a fixed module of trading that is designed in way to achieve the maximum benefit out of stocks, whether you go for long or short term trading. Looking on various aspects and consequences of trading techniques experts have already decided and fixed several protocols in order to overcome the risk of loss and benefit maximum. Stock future trading strategy is a bit complex process that cannot be understood easily with the beginners.

Some of the commonly used trading strategies are Average True Range, Volume on the Ask, Volume on the Bid and Ask, Bollinger Band, Bar Value Area, Bid Volume, Band Width, Commodity Channel Index, Chande MomentumOscillator

Apart from these strategies there are many more strategies used by the technical analysts. Money Classic Research is a leading advisory firm which acts as knowledge hub for these strategies. 

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