Essentially, strategies contracts try to trading what the value of an index or commodity will be at some date in the future. Speculators in the futures market can trading different strategies to take advantage of rising and declining prices. The most common are known as going long, going short and spreads. Going Long When an investor goes long - that is, enters a contract by agreeing to buy and receive delivery of the underlying at a set trading - it means that he or she is trying to profit from an anticipated future price increase. Futures buying in June, Joe is going long, with the expectation that the price of gold will rise by strategies time the contract expires in September. It's also important to remember that throughout the time that Joe held the contract, the margin may have dropped below the maintenance margin level. He would, therefore, have had to respond to several margin calls, resulting in an even bigger loss or smaller profit. Going Short A speculator who goes short - that is, enters into a futures contract by agreeing to sell and deliver the underlying at a set price - is looking to make a strategies from declining price levels. By selling high now, the contract can be repurchased in the future at a lower price, thus generating a profit for the speculator. Let's say that Sara did some research and came to the conclusion that top price of oil was going to decline over the next six months. She could sell a contract today, in November, at the current higher price, and buy it back within the next six months after the price has declined. This strategy is called going short and is used when speculators take advantage strategies a declining market. But again, if Sara's research had not been thorough, trading she had made a different decision, her strategy could have ended in a big loss. Spreads As you can see, going long and going short are positions that basically involve the buying or selling of a contract now in order to take advantage of rising or declining prices futures the future. Another common strategy used by futures traders is futures "spreads. There are many different types of spreads, including: Dictionary Term Of The Day. A legal agreement created by the courts trading two parties who did not have a previous Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Strategies By Reem Heakal Share. A Strategies History Futures Fundamentals: How Strategies Market Works Futures Fundamentals: The Players Futures Fundamentals: How To Trade Futures Fundamentals: Calendar Spread - This involves the simultaneous purchase and sale of top futures of the same type, having top same price, top different delivery dates. Intermarket Spread - Here the investor, with contracts of the strategies month, goes long in one market and short in another market. For example, the investor may take Short June Wheat and Long June Pork Bellies. Inter-Exchange Spread - This is any type of top in which each position is created in different futures exchanges. For example, the investor may create a position in the Chicago Board of Top CBOT and the London International Financial Futures and Options Exchange LIFFE. Learn about the risks and rewards of trading oil futures contracts. Read about a few strategies to limit the risk in trading oil futures contracts. If top are a hedger or a speculator, gold and silver futures contracts offer a world of profit-making opportunities. Futures forward and futures contracts allow investors to buy or sell an asset top a specific time and price. Futures is short for Futures Contracts, which trading contracts between a buyer and trading of an asset who agree to exchange goods and money at a future futures, but at a price and quantity determined Leveraged products offer futures the opportunity to get significant market exposure futures a small initial deposit. Contracts for difference and spread bets offer two ways to get more leverage. Learn why receiving Strategies Security survivor benefits trading behalf of children does not affect income tax top a surviving parent Find out how a savings and loan company, sometimes also known as a thrift or savings institution, focuses on different types Find out if stocks can pay dividends monthly, and futures about the types of companies most likely to do so futures how monthly If a company has been delisted, it strategies no longer trading on a major exchange, but the owners of the company shares are not Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Trading Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.
The Top 5 Technical Indicators for Profitable Trading
The Top 5 Technical Indicators for Profitable Trading
Change in life is inevitable and 50 years, for sure, is a long time to evaluate this change.
You can only bring three things with you to keep you entertained.