Futures Day Trading Contracts

In forex trading, the term Future is using to refer to anything that is predicted to occur in the future. In order to quote a future, traders need to have a clear view of the market which they do by watching news daily and keeping themselves informed of the economic status. A fundamental analysis of market trends can give us an idea of what is going to happen in the market in the next couple of months, or in the coming year. This allows traders to plan their strategies around this. Although most Forex markets provide for future date entry, there are some exceptions where it is prohibited, such as commodity and bond markets.

In forex trading, a future contract is a legally binding agreement to purchase or sell something at an agreed price in the future, among parties not necessarily known to each other. The underlying asset traded is typically a financial commodity or other financial instrument. Investors and traders use futures contracts to speculate on the potential value of these assets and commodities and therefore place a number of trades based on their predictions of the upcoming prices.

Traders and investors who make day trades or hold positions in futures contracts are called day traders. Day traders make their trades based on their own personal speculation, price predictions, market trends, and other factors. Other day traders include short-term investors who usually buy and sell their options within a matter of a few minutes, and long-term investors who trade for a few weeks or months at a time. These traders do it for different reasons but ultimately, day trading futures contracts are similar to day trading stock, currencies, or commodities.