How To Make Money On Futures

Table of contents:

How To Make Money On Futures
How To Make Money On Futures

Video: How To Make Money On Futures

Video: How To Make Money On Futures
Video: HOW TO MAKE MONEY ON BINANCE FUTURES TRADING (secret TA revealed) 2024, April
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The word "futures" denotes a certain agreement that allows you to make a deal in the future, moreover, on a specific day at the price fixed today. The main advantage of this tool is its low start-up costs. It can be used both for speculation for those who wish to trade actively, and as a substitute for stocks for experienced investors, making investments the cheapest.

How to make money on futures
How to make money on futures

Instructions

Step 1

Buying futures, you can earn significantly more than, for example, on ordinary shares. This means that to buy one share of Russian Railways, you need 150 rubles. To buy a futures contract at the same enterprise (this is almost the same stock, only for this transaction, the calculations will be made not today, but in the future), you need 50 rubles. Because for 150 rubles, you can buy as many as 3 contracts, and if the price of Russian Railways grows conditionally by one ruble, then the income will be only 3 rubles. At the same time, if the price falls, then the loss will be greater than if you bought one share of the company. And since no one can predict the future, for unprepared investors, playing on futures can become doubly dangerous.

Step 2

All futures can be conditionally divided into three groups: futures on securities - bonds and stocks, currency and commodities. To decide which one you choose, you must determine the one that is most liquid.

Step 3

In addition, in order to make money on futures, the price of them must change significantly. At the same time, if for a long time there are minor changes in the value of the contract, then the profit itself will be imperceptible. Commodity futures for oil, wheat and gold have a stable attractiveness. Of the stock futures, the most interesting are Gazprom, Lukoil and Sberbank.

Step 4

The dollar futures is the instrument that has always been the most popular. Using this tool, you can play both up and down.

Step 5

Free exchange trading allows you to sell or buy a contract at any time. In this case, sellers and consumers of goods (financial instruments) will be able to sell the goods exactly at the moment when the price seems more acceptable to them. And also at any time they can get rid of the goods if the conditions have changed.

Step 6

This is how professionals manage the risks associated with their activities. This is the main purpose of all futures contracts.

Step 7

You must know the expiration date of the futures contract and close the position before the expiration date, or better even before the day the first notification is received.

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