HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Why trade futures?


In this article, we’ll be taking a deep dive into the future. We’ll touch on the types of assets that can be traded using futures, and the advantages and general why trade futures from the global traders. Futures are essentially derivative financial contracts through which traders agree to buy or sell financial instruments (assets) in the future on a specific date and for a set price. They are often used to speculate future price movements to maximise profits or as a hedge against risks. CFDs (Contracts for difference) on futures allow you to speculate on the price of a wide range of assets which include commodities, indices, and energies.

What does a futures contract specify?

A futures contract states how many units of a particular underlying asset will be purchased or sold. It also specifies the agreed-upon price and the date on which the transaction will occur. This is referred to as the expiration date and is when the contract is settled. Futures contracts are typically cash-settled (no direct transfer of the asset) or physically settled (the underlying asset is physically delivered to the buyer).

What assets can be traded using futures contracts?

A wide variety of assets can be traded using futures contracts. This includes currencies, commodities, shares, cryptocurrencies, indexes, etc.

Why futures appeal to all kinds of traders

There are many reasons that traders choose to trade futures. Let’s take a look at some of them.

Diversification

Futures offer a pivotal way for a trader to diversify their portfolio:

Maximising profits (while managing risk)

Futures offer traders leverage and greater market exposure, increasing the potential for making profits. However, as quickly as a trader can make money, so too is their risk of losing money magnified. As with all types of trading, having a proper plan to manage risk strategically is important. A plan of this type is typically based on one’s skills, expertise, risk tolerance, and knowledge of futures trading specifically.

Another way to better manage risk is to practice futures trading using a demo trading account. A demo account offers a trader a simulated trading environment in which to test their trading strategies using virtual money. Once you’ve gained sufficient experience and the confidence to trade using your own funds, consider moving to a live trading account.

In conclusion

Futures are a great way to diversify your trading portfolio. They offer leverage and come with high liquidity. However, it is important to monitor any open positions that may make you vulnerable to large losses. Have a strategic trading plan in place and gather as much information as you can about trading futures. This will help you make more informed trading decisions, and understand the advantages that come with it, as well as the risks.

Trading with T4Trade

T4Trade is a powerful global broker with clients from countries worldwide. The broker has quickly gained popularity for its top-tier customer support and expertise in trading. T4Trade’s MetaTrader 4 platform offers traders an extensive range of cutting-edge trading tools to help them become more strategic traders. T4Trade’s innovative Academy also delivers a broad scope of educational resources that includes insightful webinars, podcasts, and video-on-demand.

In addition, an in-house team of top analysts deliver trading tips and market insights to improve your knowledge. Informative blogs and FAQ pages further enhance the learning experience.

Other reasons to choose T4Trade are:

#source


RELATED

What is DeFi staking?

DeFi, or Decentralized Finance, refers to financial services that are – decentralized. That is, DeFi aims to bypass traditional financial channels and middlemen...

Scalping as a trading style

A wide selection of financial and analytical tools allows the trader to put into practice any trading ideas. Moreover, ready-made and effective trading strategies...

Markets.com: Thousands of markets to trade

With Markets.com you can trade every market twist, turn and trend with a vast range of assets, including our thematic Blends, weighted baskets of stocks focused...

What is a Zero-Knowledge Rollup?

Blockchain technology is revolutionizing the way we store, transmit, and validate data. However, as the popularity of blockchain technology grows, so too does the demand for faster...

Mastering Stock Trading in Diverse Markets: A Deep Dive into Strategies and Nuances

Navigating the vast sea of stock trading is akin to art. The canvas of the stock market, with its myriad colors and shades, showcases a spectrum of opportunities...

Market Hiccup or Potential Loss

This article will focus primarily on the price actions of retracement and reversal...

Mastering Oil Trading: Comprehensive Strategies and Crucial Aspects

The world of oil trading offers a plethora of opportunities for savvy traders, but it also presents unique challenges. Understanding the nuances of trading in Brent Crude and West Texas Intermediate (WTI)...

Salvador Bitcoin Experiment: A brilliant idea or a fiasco

There are so many countries, so many opinions and approaches. Each country has its vision. And it is not always clear why digital assets are welcome in one economy and are considered evil by the other...

Unlocking The Power Of Correlation In Forex Trading

Correlation plays a crucial role in forex trading, providing valuable insights into the relationship between currency pairs. By understanding and analyzing correlations...

Coronavirus pandemic: Three scenarios on the global markets

Markets require central banks to take regulatory responses, and after the chaos that occurred last week, the expectation of such measures was quickly taken...

Trading in a Kimono or What Nikkei 225 Is

CFD trading in the stock market offers excellent opportunities for making money online. Moreover, unlike investors, a trader can make a profit not...

Relative Strength Index

The Relative Strength Index (RSI) is an oscillator that measures a particular financial instrument's current relative strength compared to its own price history...

Understanding What Crypto Trading is All About

The idea of Bitcoin and other cryptocurrencies feels like it has only just been created, but the first instance we see of these digital assets came out around 11 years ago...

Artificial Intelligence and Machine Learning in Trading

Over the past 60 years, AI and machine learning have made a breathtaking jump from science fiction to the real world. Though these technologies are still...

What Is Equity: A Complete Guide

Equity, also referred to as shareholder equity, is one of the most common terms in the financial markets that almost every investor or trader has come across at least once...

Equity Investments: $5 to $96000000000

Stocks of the world's largest corporations, such as IBM, JP Morgan Chase, Coca-Cola, Mastercard, McDonalds, Microsoft, Twitter, UBER, eBay, Alibaba, Deutsche Bank...

Regulation of Cryptocurrencies in South Asia

The scalability of financial technologies depends on legal system adaptability. India, with 93 million cryptocurrency owners, ranks first globally. However, India isn't among the top 20 countries for favourable crypto regulations. Establishing a favourable legal regime is crucial for India's financial market development, especially with the middle class projected to reach 90% of the population by 2039.

Designing Forex Trading Plans and Rules

Just about every consistently profitable...

Is EOS A Good Investment? Top Altcoin Insights For 2021

The cryptocurrency market is filled with innovation and ambition, where projects aim not just to be platforms for developers to build on, but full-scale ecosystems that can...

Which US companies can increase dividends despite COVID-19

The US economy has entered a deep recession since the beginning of the COVID-10 pandemic, and American corporations along with it. Dividends are in jeopardy...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.