In today’s globalized society, there is a lot of emphasis on success and the pursuit of happiness. To be successful in life, people often break down their goals into short term goals or long term goals. Financial goals are often broken down into short term goals such as paying off debt, saving for an emergency fund or even saving up money to take a vacation.
Financial goals can also be broken down into long-term goals, including retirement planning, investing for a child’s education, or planning for childcare costs during working hours. While these are all noble financial aspirations, not everyone has the necessary skillset or capital required to achieve them.
Futures trading in the UK
Trading futures in the UK is more popular than ever before. While traditional long-term investments are decreasing, trading futures offers a new way to make a profit. Also called “speculating”, an increase or decrease in price is predicted by buying or selling securities at the beginning of the contract with the promise to deliver them later on.
Trading futures can be done with physical commodities and financial instruments like stocks, bonds or currencies. When traders expect that prices will rise, they will sell short, as when they anticipate a fall, they buy on margin using borrowed funds, sometimes even 100% more than their own money. Profits are determined by market trends just as much as volatility on the cost of acquiring the commodity, which includes everything from fees for brokerage and trade execution to storage and insurance.
Benefits of trading futures in the UK
This article identifies how trading futures can help you achieve your financial goals faster than traditional trading or investing strategies.
First of all, futures trading is almost always open 24 hours a day during weekdays. Commodities are traded on the CME Globex platform, which is available to traders in the United States, Canada and Singapore from 6 pm Sunday until 5 pm Friday. Also, most major currency pairs are traded by US banks in London through the EBS system, even when it’s Saturday afternoon in New York. As such, traders are not required to work within any standard 9-5 working days unless an actual financial institution employs them with set business hours.
Low initial fees
Also, unlike traditional forms of trading or investing, you do not need vast amounts of capital to get started in futures trading. For example, before traders can purchase shares in Apple through their online brokerage account, they must first accumulate $500.00. However, for most currency pairs and commodities such as oil or gold, the minimum margin requirement is no more than 5%. Also, you can trade forex with a leverage of 100:1 (although this should be used sparingly, if not expertly).
Other methods might suit your needs better for those who do not have the skillset required to day-trade futures contracts successfully. Scalping is a method that involves holding a position only briefly before closing it again, generally within a few minutes or even seconds. Those traders who consider scalping beneath them but still want to profit from shorter-term market changes can do so by using the 50 EMA as their “trigger” for trade entries.
Other benefits of trading futures contracts are that they are risk-free since they are guaranteed by the exchange where you bought it, while also giving similar rewards to other types of investments inc. stocks while removing the need for constant monitoring of the stock market.
So if you are interested in trading futures but are not sure where to start, try out a demo account with a regulated futures broker. Most of them will provide new clients with free access to either Ninja Trader or MetaTrader 4 for 30 days. These two programs allow users to place trades on all major commodities and currency pairs through CME Group without any commissions being applied to their accounts.
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