What Is Future Contract In Commodity Trading ?

Discussion in 'General Trading Discussion' started by Khelo MCX, Jul 24, 2018.

  1. Khelo MCX

    Khelo MCX Member

    Joined:
    Jul 2018
    Posts:
    8
    Likes Received:
    0
    I am beginner in world of trading. Want to explore and learn stock and commodity market
     
  2. Frank Allan

    Frank Allan Member

    Joined:
    Aug 2018
    Posts:
    15
    Likes Received:
    0
     
  3. Frank Allan

    Frank Allan Member

    Joined:
    Aug 2018
    Posts:
    15
    Likes Received:
    0
    Tips/ Pips and Pips/Tips is future deal accepted . One is of the trader and the other is on buyer. Leverage value is on the buyer at up mark and low mark is given to trader at pip for pip automatically otherwise
     
  4. J_C_Anderson

    J_C_Anderson Senior Investor

    Joined:
    Aug 2018
    Posts:
    125
    Likes Received:
    2
    Futures provide possibility to fix price for a certain period of time. For example, if someone expects potential growth in Crude Oil prices, he can buy futures - special contract, that specifies commodity type, price, amount and date of delivery. In such case, there is no need to pay full amount, it is usually enough to pay approx.10% (depending on current rules).
    There are lot of wondeful books, dedicated to Futures tradind, even if these books are 20-years old you can find there basic principles and ideas.
     
  5. Buyonthedips

    Buyonthedips Senior Investor

    Joined:
    Feb 2018
    Posts:
    504
    Likes Received:
    1
    Hi @J_C_Anderson

    Great post - we live in a world where things change so quickly but the basic principles behind investment (in this case futures trading) never change. Sometimes it is good to go back to basics and read up on "old" strategies as you will find many are still relevant today. Do you trade futures on a personal basic?
     

Share This Page