Trading Forex Futures

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http://profitabletradingtips.com/trading-investing/trading-forex-futures

Trading Forex Futures

A potentially profitable avenue for online futures trading is trading Forex futures. In general, Forex traders limit themselves to trading only major currencies. These are the US dollar (USD), Yen (YEN), Euro (EUR), British Pound (GBP), Swiss franc (CHF), Canadian dollar (CAD), and Australian dollar (AUD). One engages in trading Forex futures with the majors because these currencies trade in high volume, which makes technical signals more accurate and technical trading more profitable. There are two basic reasons for trading Forex futures. The first is to hedge currency risk in international trade. The other is to speculate on and ideally profit from volatility in the currency markets. Traders use both fundamental and technical analysis to predict price movement when trading Forex futures. Forex futures can be traded directly or one can engage in trading futures options in Forex to further hedge risk.

Currency Selection

Futures trading strategy in Forex depends upon why one is trading in the first place. A European company that purchases lithium batteries from a Japanese company will commonly need to pay in Yen. After the company signs a contract it can pay immediately or pay at the time of delivery. Because the price of Yen when purchased with Euros may rise significantly a company will often buy a futures contract to purchase Yen at a set price. This guarantees the company a set price for their purchase. However, a speculator is not tied to a specific currency pair and can scout the market for opportunity. Trading Forex futures in the USD/EUR pair may be attractive or trading AUD versus GBP may offer greater profit potential. A currency speculator will pick and choose his or her trades and profit to the degree that he or she correctly anticipates price movement.

Trading Strategy

In general, the various profitable day trading strategies that one employs in trading stocks, options, or futures other than Forex also work in trading Forex futures. Consider range trading, trend trading, scalping, trading the news, contrarian trading, and others. In each case a trader needs to know market fundamentals and understand when changes occur. Profits in trading Forex futures will commonly depend on the skill set of the trader no matter what strategy he or she uses...

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Trading Forex Futures

  1. 1. TRADING FOREXFUTURESBywww.ProfitableTradingTips.com
  2. 2. A POTENTIALLY PROFITABLEAVENUE FOR ONLINE FUTURESTRADING IS TRADING FOREXFUTURES.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  3. 3. IN GENERAL, FOREX TRADERSLIMIT THEMSELVES TO TRADINGONLY MAJOR CURRENCIES.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  4. 4. THESE ARE THE US DOLLAR(USD), YEN (YEN), EURO(EUR), BRITISH POUND(GBP), SWISS FRANC(CHF), CANADIAN DOLLAR(CAD), AND AUSTRALIAN DOLLAR(AUD).http://profitabletradingtips.com/trading-investing/trading-forex-futures
  5. 5. ONE ENGAGES IN TRADING FOREXFUTURES WITH THE MAJORSBECAUSE THESE CURRENCIESTRADE IN HIGH VOLUME, WHICHMAKES TECHNICAL SIGNALS MOREACCURATE AND TECHNICALTRADING MORE PROFITABLE.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  6. 6. THERE ARE TWO BASIC REASONSFOR TRADING FOREX FUTURES.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  7. 7. THE FIRST IS TO HEDGE CURRENCYRISK IN INTERNATIONAL TRADE.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  8. 8. THE OTHER IS TO SPECULATE ONAND IDEALLY PROFIT FROMVOLATILITY IN THE CURRENCYMARKETS.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  9. 9. TRADERS USE BOTH FUNDAMENTALAND TECHNICAL ANALYSIS TOPREDICT PRICE MOVEMENT WHENTRADING FOREX FUTURES.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  10. 10. FOREX FUTURES CAN BE TRADEDDIRECTLY OR ONE CAN ENGAGE INTRADING FUTURES OPTIONS INFOREX TO FURTHER HEDGE RISK.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  11. 11. CURRENCY SELECTIONhttp://profitabletradingtips.com/trading-investing/trading-forex-futures
  12. 12. FUTURES TRADING STRATEGY INFOREX DEPENDS UPON WHY ONEIS TRADING IN THE FIRST PLACEhttp://profitabletradingtips.com/trading-investing/trading-forex-futures
  13. 13. A EUROPEAN COMPANY THATPURCHASES LITHIUM BATTERIESFROM A JAPANESE COMPANY WILLCOMMONLY NEED TO PAY IN YEN.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  14. 14. AFTER THE COMPANY SIGNS ACONTRACT IT CAN PAYIMMEDIATELY OR PAY AT THE TIMEOF DELIVERY.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  15. 15. BECAUSE THE PRICE OF YEN WHENPURCHASED WITH EUROS MAYRISE SIGNIFICANTLY A COMPANYWILL OFTEN BUY A FUTURESCONTRACT TO PURCHASE YEN AT ASET PRICE.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  16. 16. THIS GUARANTEES THE COMPANY ASET PRICE FOR THEIR PURCHASE.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  17. 17. HOWEVER, A SPECULATOR IS NOTTIED TO A SPECIFIC CURRENCYPAIR AND CAN SCOUT THE MARKETFOR OPPORTUNITY.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  18. 18. TRADING FOREX FUTURES IN THEUSD/EUR PAIR MAY BE ATTRACTIVEOR TRADING AUD VERSUS GBP MAYOFFER GREATER PROFITPOTENTIAL.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  19. 19. A CURRENCY SPECULATOR WILLPICK AND CHOOSE HIS OR HERTRADES AND PROFIT TO THEDEGREE THAT HE OR SHECORRECTLY ANTICIPATES PRICEMOVEMENT.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  20. 20. TRADING STRATEGYhttp://profitabletradingtips.com/trading-investing/trading-forex-futures
  21. 21. IN GENERAL, THE VARIOUSPROFITABLE DAY TRADINGSTRATEGIES THAT ONE EMPLOYSIN TRADING STOCKS, OPTIONS, ORFUTURES OTHER THAN FOREXALSO WORK IN TRADING FOREXFUTURES.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  22. 22. CONSIDER RANGETRADING, TRENDTRADING, SCALPING, TRADING THENEWS, CONTRARIAN TRADING, ANDOTHERS.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  23. 23. IN EACH CASE A TRADER NEEDS TOKNOW MARKET FUNDAMENTALSAND UNDERSTAND WHEN CHANGESOCCUR.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  24. 24. PROFITS IN TRADING FOREXFUTURES WILL COMMONLY DEPENDON THE SKILL SET OF THE TRADERNO MATTER WHAT STRATEGY HEOR SHE USES.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  25. 25. OF COURSE, TRADING STRATEGYALSO VARIES WITH WHETHER ONEIS TRADING TO REDUCE CURRENCYRISK OR PURELY SEARCHING FORPROFITS IN MARKET VOLATILITY.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  26. 26. TRADING PROFITShttp://profitabletradingtips.com/trading-investing/trading-forex-futures
  27. 27. TRADING PROFITS TRADING FOREXFUTURES DEPEND UPON MAKINGMONEY ON TRADES AND KEEPINGCOSTS DOWN.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  28. 28. SMART TRADERS PICK GOODTRADING SITUATIONS.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  29. 29. THEN THEY WAIT FOR THE RIGHTCIRCUMSTANCES BEFORETRADING.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  30. 30. TRADING PROFITS DO NOTNECESSARILY DEPEND UPONFREQUENT TRADES.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  31. 31. TRADING PROFITS DEPEND UPONMAKING ENOUGH MONEY ON EACHTRADE TO PAY FOR FEES ANDCOMMISSIONS AND TO GIVE A FAIRRETURN FOR YOUR TIME ANDEFFORT.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  32. 32. MANY SMART TRADERS APPROACHTRADING AS A SMALLBUSINESS, AND LOOK TO SEEPROFITS COMPARABLE TO SUCH ABUSINESS.http://profitabletradingtips.com/trading-investing/trading-forex-futures
  33. 33. IF THIS DOES NOT OCCUR THEYRECALIBRATE AND TRY AGAIN.http://profitabletradingtips.com/trading-investing/trading-forex-futures

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