Thursday, January 19, 2012

Future Market - "Think Big and Make Big Profit"

Future market is a central financial exchange where people can trade standardized future contracts that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures contracts on commodities and financial futures are negotiated.

DESCRIPTION:

A futures contract is an agreement to buy or sell in the future a specific quantity of a commodity at a specific price. Most futures contracts contemplate actual delivery of the commodity can take place to fulfill the contract. However, some futures contracts require cash settlement in lieu of delivery, and most contracts are liquidated before the delivery date.

An option on a commodity futures contract gives the buyer an option the right to convert the option into a future, which uses future and option market commodities they trade. These users, most of whom are called "hedgers," want the value of their assets to increase and want to limit, if possible, any loss in value. Hedgers may use the commodity markets to take a position that will reduce the risk of financial loss in their assets due to a change in price.

Other participants are "speculators" who hope to profit from changes in the price of the futures or option contract. Some commodities include agricultural products, such as corn, soybean, barley, orange juice, cattle, pork bellies, coffee, cotton and lumber, and metals such as gold, platinum, silver and copper. There are a fixed number of financial futures that are included in negotiations in contracts with US Treasury notes and bonds. Negotiating in the futures market can be as exciting for an adult as riding on a roller coaster could be to a kid. There are overnight profits and losses that are of greater magnitude than those given in other financial investments such as stocks and bonds.

Consequently, investing in futures markets is within the riskiest investments.

BENEFIT OF FUTURE MARKET:

• Gain your investment.

• Go short in the market.

• Make an investment that tracks the entire market through one single transaction

• Speculate in movements in market prices or hedge against price exposure in a simple and expedient way

• As far as the futures market in farm produce is concerned, the farmer has a guarantee for payment and quality risk is avoided. It promotes storage and warehousing facilities and logistics facilities. It also increases the bargaining power of the farmers and enables decision on crop sowing and time of sale.

• Commission charges are small compared to other investments.

• All in all, futures are the perfect traders market.

HOW YOU INVEST IN FUTURE MARKET?

• First of all if you want to invest in future market, in my right opinion you should take advice from a good financial adviser company. Which is really can give you more profit in your invest. Financial adviser act as advisories for your investment, pension and financial plans. There are so many different advisers out there in the market place and each will come with their own personalities, views, opinions and experience levels. Do not be afraid to look around and do not settle until you feel comfortable with your choice of adviser.

• Here is a brief overview of what a financial adviser actually does:

• Make Planning and strategy.

• Give you right Investing options.

• Research on the financial statements.

• Clear all Question and doubt.

• Annual review

• They can recommend strategies that you can use to improve your financial situation achieve your financial goal out investment routes

• Many brokerage services, both traditional and online, offer futures and options trading services. For people just starting to trade, working with an experienced broker may help minimize some of the risk that often is associated with these two trading strategies. As you gain experience, moving to primarily online trading can help you minimize costs and speed trades.

• Before planning specific trading objectives, decide on either a bullish or bearish outlook.

• After making a general forecast, consult the price chart of the futures market you plan to trade. Look for patterns in the chart to plan entry points and price targets. This kind of research is called technical analysis.

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