Switching from Forex to Futures?
This is your introduction to futures,
A guide to the “Gentlemen’s” market🥂
A Thread🧵
This is your introduction to futures,
A guide to the “Gentlemen’s” market🥂
A Thread🧵
So what are futures and futures contracts?🤔
Futures are derivative assets wherein the value is tied to a certain asset.
Trading futures means that you’re just capitalizing on the price movements without actually owning the asset.
If you’re a US citizen trading futures, you get the advantage of tax benefits which is discussed in the YT video, below this thread.
Futures are derivative assets wherein the value is tied to a certain asset.
Trading futures means that you’re just capitalizing on the price movements without actually owning the asset.
If you’re a US citizen trading futures, you get the advantage of tax benefits which is discussed in the YT video, below this thread.
Since we are trading price movements, let’s focus on tick size, tick value, and notional value.💎
When trading futures, there’s something called tick size which is the smallest price movement of a contract.
Tick value on the other hand is the value of the asset per tick.
Then lastly, the notional value represents the full value of the contract you’re trading.
When trading futures, there’s something called tick size which is the smallest price movement of a contract.
Tick value on the other hand is the value of the asset per tick.
Then lastly, the notional value represents the full value of the contract you’re trading.
Since futures contracts have high notional value, we can’t directly trade them with small capital.💵
This is where leverage and margin comes in.
Leverage is borrowed money which gives you power to control more money with smaller capital.
Margin on the other hand, acts as a security deposit to back up those leveraged positions.
There are two types of margin you need to know, which are discussed in the full YT video, so check it out after :)
This is where leverage and margin comes in.
Leverage is borrowed money which gives you power to control more money with smaller capital.
Margin on the other hand, acts as a security deposit to back up those leveraged positions.
There are two types of margin you need to know, which are discussed in the full YT video, so check it out after :)
Great, now that you know those basics, where can you trade futures contracts?⚖️
First, let’s discuss two types of brokers.
Traditional Brokers
Discount Brokers
Traditional brokers often require higher margin deposits.
Discount brokers on the other hand have lower margin deposits.
First, let’s discuss two types of brokers.
Traditional Brokers
Discount Brokers
Traditional brokers often require higher margin deposits.
Discount brokers on the other hand have lower margin deposits.
There are two types of contracts in the futures market:
Minis and Micros
->Minis are ideal for large accounts and traders with high risk tolerance.
->Micros on the other hand are better for traders with small accounts.
Minis and Micros
->Minis are ideal for large accounts and traders with high risk tolerance.
->Micros on the other hand are better for traders with small accounts.
Futures contracts has expiration dates as well 📅
It is always best to trade the Front Month
(contract with nearest expiration date)
These contracts has 4 major expiration months.
H = March
M = June
U = September
Z = December
Tip: If you don’t want to change the chart you are charting, you can also chart the continuous contract of an asset which is usually ending with “1!”
It is always best to trade the Front Month
(contract with nearest expiration date)
These contracts has 4 major expiration months.
H = March
M = June
U = September
Z = December
Tip: If you don’t want to change the chart you are charting, you can also chart the continuous contract of an asset which is usually ending with “1!”
Futures Market Hours: When can you trade? 🕔
The futures market opens at Sunday evening at 6:00 PM EST.
The markets are open nearly 24hrs a day from Sunday evening through Friday afternoon.
The futures market also have a daily trading breaks from 5:00 PM to 6:00 PM EST.
Lastly, the closing time for this market is on Friday at 5:00 PM EST and is closed over the weekend.
The futures market opens at Sunday evening at 6:00 PM EST.
The markets are open nearly 24hrs a day from Sunday evening through Friday afternoon.
The futures market also have a daily trading breaks from 5:00 PM to 6:00 PM EST.
Lastly, the closing time for this market is on Friday at 5:00 PM EST and is closed over the weekend.
I hope you’ve found this insightful!
Thanks for reading until the end!
Bookmark, Retweet, Like and Comment under this thread! Would greatly appreciate that💚 x.com
Thanks for reading until the end!
Bookmark, Retweet, Like and Comment under this thread! Would greatly appreciate that💚 x.com
If you love the value that these threads provide,
Join my free community where you will find even more.
And if you're struggling, I'll help you get on the right path (promise).
See you there :)
Click here: discord.gg x.com
Join my free community where you will find even more.
And if you're struggling, I'll help you get on the right path (promise).
See you there :)
Click here: discord.gg x.com
جاري تحميل الاقتراحات...