Discount Futures Trading

2008-11-10 10:12:13

( Financial )



Futures trading.
Futures trading involves the sale of any commodity at certain price, for delivery at a future time. For instance, you can order one hundred crates of barley at ten dollars per crate today, to be delivered in two months. The price will be the prevailing value of the product for that day, as sold on the futures exchange- a market where futures are traded. When delivery day comes, the price of barley may be drastically different, slightly different, or exactly the same. Depending on the scenario, you could be a big or small winner, a big or small loser, or you could simply make no profit at all.

Buying and selling futures.
Futures can be bought through online trading, in the same way that currencies can now be traded through an online foreign exchange. Many companies that broker foreign exchange trading have given access to their services online. The same brokers may also be offering online trading for futures. If you are interested in entering the futures market, contact your broker and ask him if his company offers online trading for futures.

Discount futures trading.
Interestingly, a futures contract is actually a commodity in itself. It can be bought and sold like any other product. Discount futures trading involves the sale of a contract or option at less than the price receivable-or payable-in the contract or option. Discount futures trading is useful for those who need immediate liquidity. It is also a speculative form of trading that can result in great profits, but should be done with great deliberation. Discount futures trading may or may not result in a loss for the seller or the buyer, depending on which way the prices move. As with any kind of trader’s game, winning in discount futures trading requires experience, skill, and a good amount of luck.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.