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
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