Intraday futures trading

Hello, fellow currency speculators! Today I present another interesting educational material - intraday trading of futures on the CME.
This course will cover futures trading on the Chicago Mercantile Exchange (CME).
Why was this particular trading platform chosen? The answer to this question is below:

CME is the largest exchange in the world; it trades futures on almost everything that can be bought and sold in the world (raw materials, products, goods).
— This is one of the most liquid markets (huge money capital circulates on this exchange).
-On the CME there are no sharp “shots” of the price (or spikes) due to which many people lose their deposits on Forex and then unsuccessfully “butt” with the broker trying to persuade the latter to cancel the unprofitable transaction formed as a result of a non-market quote.
— This exchange is the most predictable and most convenient for trading.
-On this market you can earn huge fortunes due, again, to liquidity (you can enter CME with any large capital you like - there is more than enough liquidity, unlike the Russian FORTS futures market)
-It is at the Chicago Mercantile Exchange that global prices for raw materials and food products are formed.

What will you learn by reading the presented material: intraday trading of futures on the CME:

1. Where and how to open a trading account on CME, how to set up a trading terminal for gacha trading.
2. Learn a simple strategy, following the rules of which you are likely to make a profit.
3.You will have special indicators by which you will be able to accurately determine the entry and exit from a position.
4. You will understand what difficulties exist when trading futures and how to avoid them, and you will also understand how the price is formed and why it moves.
5.You will learn a new look at the market and price chart analysis, and also understand how to correctly set a protective stop.

CME is very well laid out in a video - I recommend watching it:

We discussed how to switch from Forex to CME in the article

And feel the advantages over Forex trading yourself.

Reads the course Profitable futures trading 2.0 well-known lecturer in the trading community - Evgeniy Strizh:

Presented for the futures market in the Russian Federation broker ZERICH (also provides access to foreign trading platforms). I presented a detailed review of this broker for trading on the stock exchange and NYSE in the article

Removed at the request of the copyright holder

PPS: Write in the comments whether the material presented on our portal was useful and what else you would like to see on the pages of the site.

If there is a desire and opportunity to help you with the project

By the end of the year, Bitcoin (BTC) will be able to overcome the level of 20 thousand dollars per unit, and according to some analysts’ estimates, even reach 25 thousand dollars. The launch of futures on the Chicago Mercantile Exchange could become the third strong catalyst in 2017, which will push the price to another rise.

Despite the profit-taking that can be observed now, by the end of the year the Bitcoin exchange rate may be in the area of ​​22-25 thousand US dollars, believes Evgeniy Boldin, an expert in the analytics department of the Analytics Online company.

“At the time of the launch of Bitcoin futures on the CME, we expect to see the same volatility as at the time of the launch of the CBOE. Trading will most likely begin around 17.00 Moscow time on December 18, 2017 at the height of the American trading session, which is considered the most aggressive in all markets. And the fact that Bitcoin is currently a little cheaper due to cashing out and profit-taking makes us expect an even more rapid surge upward,” he says.

According to Mikhail Mashchenko, an analyst at the social network for investors eToro in Russia and the CIS, by the end of the year the asset may well try to reach the $20 thousand mark. However, the chances of such a development of events are still small. In all likelihood, new activity in the market should be expected no earlier than 2018, the expert believes.

However, there are those who are completely skeptical. For example, Doctor of Economic Sciences, representative of the Universa company Alexey Mikheev believes that Bitcoin will continue to grow, but not at such a rapid pace as before the appearance of futures on the American CBOE exchange.

Annual review

Bitcoin met the New Year at $966.58 per coin; by December 15, its price was $16.396 thousand on the Bitfinex exchange, i.e. In almost a year, its rate jumped almost 17 times.

Experts cite three main reasons for such strong growth.

“If we analyze the entire past year, we can identify several important events that influenced the growth of the value of Bitcoin: August 1, 2017 – Bitcoin hard fork and the emergence of Bitcoin Cash; December 10, 2017 – launch of Bitcoin futures trading on CBOE. Another powerful event awaits us - the launch of Bitcoin futures on CME on December 18, 2017,” points out Evgeniy Boldin.

The last leap from $6.1 thousand to current values ​​was completed in just under a month and a half, calculated Mashchenko from eToro.

According to experts, the launch of Bitcoin futures on CME will be the last factor this year that will push the price of Bitcoin up.

Bitcoin futures. Start

On the first day of trading on SVOE, abnormal volatility was recorded: futures quotes increased by 25% and trading had to be suspended twice to “cool down” the participants in the transactions, recalls Mikheev.

The platform launched three futures – January, February and March, says Oleg Bogdanov from Teletrade Group. The first day of trading was quite active: trading was stopped twice, the futures price increased by 2 thousand dollars, from approximately 16 thousand to 18 thousand dollars.

We traded 60 million dollars. It seems like a lot, but for comparison, the analyst cites data from other markets: the volume of trading in gold is $40 billion per day, in oil – $440 billion per day.

The next day, these small trading volumes fell catastrophically - to 3 million dollars, on Wednesday even less, and on Thursday trading almost stopped, only isolated transactions were observed! “It is obvious that the futures did not arouse much interest among institutional investors. Even a 7% profit per month from arbitrage operations does not attract players. Apparently, there are many questions for the so-called cryptocurrency exchanges, there is a systemic risk and therefore serious players are refraining from operations for now,” comments Bogdanov.

Mashchenko points out that the turnover of futures in the first days was not the greatest: JPMorgan, Citigroup and Societe Generale, the largest brokers providing access to futures, did not participate in the first day of trading.

“Many players have complaints about the pricing of the asset. The fact is that futures are based on the price of Bitcoin on the Gemini platform, which is in 13th place in terms of trading volume, and accounts for only 1.6% of the total market turnover. According to market participants, such small indicators are not able to accurately reflect the whole picture of a huge industry,” comments Mashchenko.

At the time of writing, the cost of January futures was 17.26 thousand dollars, February 17.42 thousand, March 17.7 thousand, noted Evgeniy Boldin. Thus, the current growth is just over 25%.

Should we expect a repeat?

According to analysts, the capitalization of the Bitcoin market is about $280 billion, despite the fact that the total capitalization of the cryptocurrency market is slightly more than $500 billion. “Of course, the data depends on the cost of each unit, but their actual number is also growing,” Boldin notes.

However, according to Mikhail Krylov, director of the analytical department of Golden Hills - Kapital AM, the launch of futures on the American CBOE exchange and expectations of an analogue on CME had little effect on the capitalization of bitcoin, since the contracts are settlement and are not backed by bitcoins, but are tied to the index price. Liquidity fluctuates within several thousand transactions per day, and can only increase when Bitcoin is accepted at all retail outlets and POS terminals, and this will not happen soon, he believes.

“The capitalization of cryptocurrencies over half a trillion dollars, of which Bitcoin accounts for about $280 billion, is still 4.3 times less than the volume of cash dollars in circulation. And although the market value of a unit of the payment system is much higher than the Russian ruble, our managers recommend staying away from the happiness called cryptocurrency,” says the analyst. Quotes have already increased significantly, and this growth is ensured mainly by the hype of anonymous payments and the number of network users, he explains the reasons.

Alexey Mikheev from Universa also notes that the emergence of Bitcoin futures has further increased the excitement in the cryptocurrency market. To correctly assess the possible impact of derivatives on the world’s main cryptocurrency, one should wait for more interesting futures from the CME Group, Mashchenko is sure.

Thus, experts agree that the cryptocurrency market has room to grow, and despite the high-profile capitalization figures, it is still too small compared to other markets. This could not be influenced by trading in Bitcoin futures contracts. But it is with crypto futures and the start of trading on the CME that experts pin their hopes for a new explosive growth in the rate of the main cryptocurrency.

Futures trading on the stock exchange is a rather specific type of transaction, which is practically not developed in Russia. If you search on the Internet for “Futures trading strategies” or “Futures trading in Russia”, the search engine will only tell you about the Forts derivatives market and RTS index futures. Futures trading is much more developed on the and exchanges, which together control almost the entire derivatives market (futures and options). A brief excursion into how to trade on American exchanges, as well as the differences between strategies for trading futures and direct assets (Forex) is presented below.

Futures trading on the exchange

As a basic example, let's take a novice investor's desire to invest in gold futures. In conditions of unstable stock markets, this metal feels great. However, the above algorithm will be relevant for other assets.

All 20 futures contracts appear before the trader with delivery dates ranging from several days (months) to several years in advance. We go into each of the contracts and look at the Volume value. We are interested in its greatest significance. The most liquid, as practice shows, are futures with delivery dates for goods in 1-2 months from the current date. And the full ticker of our asset is indicated in the title. In this case, it is GCQ16, where Q is the month marking, 16 is the year.

1. The next thing that a trader should be interested in is the date of the last day of trading and the start of delivery for this futures. If you miss these dates, you will have to close the transaction on an illiquid market, losing large losses due to the increased spread. In the worst case, you can even run into delivery, that is, get caught in the actual execution of the futures contract, and then think about what to do with the real box of gold bars. Although this does not actually happen on the stock exchange.

The date is indicated in the specification discussed in paragraph 1, in the Calendar section.

1. The next step is to determine the volume of contracts that a trader can purchase taking into account the leverage (margin trading) that the broker will provide him. When purchasing a contract, the broker retains a deposit - an amount that will remain unavailable to the client until the end of trading - trading futures on the CME exchange requires 10 thousand dollars. USA starting capital. To determine the amount, you can use the exchange's summary tables, but they are cumbersome and difficult to understand. I recommend the RJOBrien website, where you can find it in pdf. download the table. Gold in it will be in the CMX-COMEX section (a division of CME that deals with precious metals). Let's look at the values ​​in the columns:

• Spect Init - initial margin. If, for example, it is equal to 11,110, then with a deposit of 15 thousand dollars. A US investor can buy only 1 contract, with a deposit of 35 thousand dollars. USA - 3 contracts;
• Spect Mnt - maintenance margin. For the above case, it can be conditionally equal to 8,500. This is a limit below which you cannot fall. If the amount in the account drops below 8,500 (the purchased futures will become cheaper), then you will either need to deposit money into the account or close the position, fixing the loss.

1. Although futures trading on the exchange is 24 hours a day, there are interruptions. The trading time can be seen in the same specification (Hours) by translating it to your time zone. Also in the specifications for the metal you can see the trading leverage and the minimum price movement.

This general algorithm allows you to trade any underlying asset. And how to conduct it, when to buy or sell, technical and fundamental analysis will answer. And be sure to always keep your Trading Desk phone handy if you have any problems with the Internet.

At its core, futures trading is almost similar to Forex, but there are several differences:

• an open position on Forex can be as long as desired, whereas futures have a limited period. Moreover, this period affects the activity of trading;
• For futures, swaps are already included in their price (swap in this case is a fee for transferring a position to the next day);
• Instead of leverage, the futures market uses the concept of collateral margin, which can be different for different assets.

Otherwise, futures trading on the exchange is identical to Forex.

But still I’m here and even writing a note on my blog.

Last year, during the summer months, I began to seriously think about starting a new stage in my career as a private trader.

Questions related to trading sat in my head and they haunted me in the hot summer months, precisely during the period when I was on vacation in Sochi and it seemed like I had to think about the sun, sea, beach, girls ... ah (just kidding), etc.

Questions:

1. I have been trading on FORTS for several years, maybe it’s time to try something else (foreign trading platforms, such as CME, NYSe...)?
2. What advantages do Western exchanges provide, and do they provide them in principle?
3. Will there be any problems with calculating and paying taxes on foreign currency income?
4. What trading scheme should I use: prop trading (for example through UT) or through a licensed foreign broker?

Returning home to Yekaterinburg in August 2016, I decided to practice trading futures on the CME through UT, participating in a finderby organized by them for a fee. Traded SP futures, gold futures, euro-dollar, oil.

After a couple of months of training, I was ready to try trading using the prop trading system, but it did not suit me for a number of reasons (their presentation is not the essence of this writing and therefore I will skip them).

I realized that I, as a self-confident and independent person, need to work on the CME market directly through an appropriate legal broker who has a license and with favorable conditions for me (low commissions, ensuring the safety of my capital, etc.).

For myself, I have identified the following advantages of trading on the CME (Chicago Mercantile Exchange).

1. Almost 24/7 trading time, with the exception of the time period at 01:00 (currently from 00:00 to 01:00 Moscow time) and with the exception of trading on weekends. This is very important for me, because I conduct positional trading with stop losses, which I sometimes hold for several days, since the risk of running into a gap and price jumping is much lower.

2. High liquidity on large contracts (mini and micro futures do not count!!!). Liquidity cannot and is not correctly compared with FORTS futures since the collateral (collateral) on CME is in dollars, and not in rubles as on FORTS.

For example, futures for gold on CME range from 4,300 to 6,000 dollars (I speak from my personal experience), on Forts GO for gold it will be 7,000-9,000 rubles!!! approximate. Therefore, when you see a “pin” or “puncture” on the gold chart on FORTS, it does not mean that you will see it on the chart of the same metal on the CME. If you now open the charts for the months of June-July and compare them, then you will understand me. For traders conducting positional trading with stops, this is very important, since the minimum probability of stops being triggered on “punctures” is important to us.

3. The range and variety of futures contracts on CME is much higher. I got acquainted with trading wheat futures, bonds and which are not even mentioned on FORTS.

4. The presence of mini and micro contracts on CME is a big plus as it helps to increase trading efficiency.

For example, at my broker (I deliberately do not indicate which one) the micro-contract for MGC gold is $434 for overnight transfer and $250 for intraday trading, 1 tick equals 1 dollar. For example, taking a $30 move in gold from 1220 to 1250 you could make $300 from just one MGC contract. On Forts, to earn 50% on 1 gold contract, you need to take a movement of more than $40.
Trading 1 gold futures (GO $4,500) is much easier, in my opinion, than trading 50 GOLD futures on FORTS, and even with a limited trading time, isn’t it?

5. The problem of broker reliability will be significantly reduced if you find an American broker who is licensed and listed as a broker on the CME exchange website.

6. There should be no problems with taxation. A declaration of income in foreign currency is submitted once a year to the tax office at the place of residence (permanent registration).

7.No currency risk. Your working capital is in dollars, not rubles.

Among the disadvantages of trading on the CME, I can note a higher entry threshold for capital. With a capital of less than $1,000 - $1,500, you shouldn’t bother, in my opinion.

An amount of 1000 - 1500 is certainly not enough for trading standard futures, but it is quite suitable for working with micro futures (euro-dollar, gold - they are quite liquid) and some liquid mini contracts: natgas, oil).

For active intraday trading from microfutures, only the euro-dollar (M6E) is suitable due to good liquidity, as well as a mini contract for oil - (QM).
Micro gold contract (MGC) is more suitable for positional trading.

Attention!!!

I am ready to consider options for mutually beneficial cooperation with an investment partner who wish to invest their funds in the CME futures market and receive income in foreign currency!!!

I ask all persons interested in cooperation to write to me in a personal message.

I can note about myself - I have a higher legal education from a prestigious Russian university and I am quite soberly aware of my civic responsibility.

Experience in the Russian futures and options market (FORTS) since 2009 (before that I only traded shares on the MICEX).

I have been trading on the CME since the fall of 2016.

That's all I have for now!

Sincerely, Kuzmin Vadim Vladimirovich

Hello, dear blog readers! Every day, well-known financial instruments, such as currency pairs or stocks, are becoming less and less attractive for private traders who work with relatively small capital. Of course, this puts investors in a difficult position. However, this does not mean that online trading has completely exhausted itself: to get back into the game again, it’s quite simple reconsider certain emphases and shift your focus to new ways of investing.

Derivatives trading, namely futures trading, deserves special attention. Actually, this is what we will talk about now.

What is a futures?

Futures is a contract concluded between two investors. The subject of the agreement is the delivery of the asset within a clearly established time frame and at a pre-agreed price. In such a trading operation, the exchange acts both as an intermediary and a regulator.

Let's try again to figure out what futures are, but now in simple words. Let us explain the essence of this derivative financial instrument using an example. Let's say you have 3 tons of grain, but this year a record harvest is expected, which will ultimately cause the value of this asset to decline. How to insure yourself against possible risks?

It is enough to conclude a futures contract by selling grain at a set price. Let’s imagine that at the time the agreement was signed, the price had not yet dropped. Thus, if the fears come true, the buyer of the asset will lose money, while you sell the grain at the highest possible price.

However, the proposed example is more theory, because private investors do not trade grain, they earn money through speculative trading operations. Futures trading is designed in such a way that each participant in the transaction will be able to transfer their obligations to third parties, which actually allows you to speculate without waiting for the actual delivery of the asset. Not to mention that there are special futures contracts that do not involve physical delivery of the asset.

Educational introductory videos

To reinforce the material, be sure to watch a series of videos that will introduce you to futures.

Classification of contracts

Futures are divided into two categories: delivery and settlement. Naturally, trading technology changes depending on the type of contract. Therefore, before you start trading, you need to carefully study the characteristic features both types.

Delivery

The essence delivery futures is clearly expressed in the very name of the derivative. It involves completing a transaction with the actual delivery of goods. Thus, at the end of the contract's maturity, the buyer must receive the asset at a predetermined price. Compliance with conditions controlled by the exchange, if the rules of the transaction are violated, a fine is imposed on the participant.

Settlement

Calculated futures is the radical opposite, because according to the terms of this contract actual delivery of the asset is not anticipated. Payments between participants are made exclusively in cash.

From all that has been said above, we can conclude that supply futures are used mainly by agricultural and industrial enterprises that are really interested in purchasing raw materials or finished goods at the best price. In its turn, settlement contracts are used by investors to make speculative transactions.

Key differences between futures and stocks

Promotion is a financial instrument presented in the form of a legally approved document. Participants in a transaction with this security are vested with certain obligations and rights. In its turn futures is a derivative, that is, a derivative instrument expressed in the form of a contract for the supply of an asset.

Thus, you can buy stock futures, index futures, oil futures, gold futures and other assets. The topic of stock trading for beginners and not only is covered in detail in the article “”.

Futures trading also differs from stock trading in that contracts have built-in leverage. This feature fully determines the fact that futures are perhaps the most liquid instrument. Below is a video that explains in detail how leverage works.

Trading platforms: CME and FORTS

Futures trading is predominantly carried out on the American and Russian markets, CME And FORTS respectively.

USA

Chicago Mercantile Exchange– one of the most famous trading platforms in the world. In 2013, CME absorbed the equally well-known exchanges NYMEX and CBOT. In the American market, investors buy futures for international assets, such as Brent oil and shares of well-known issuers.

To start working on the Chicago Stock Exchange, an investor needs to select a broker who would provide a similar service. The impressive size of the guarantee on futures is perhaps the stumbling block due to which Russian investors refuse to enter the American market. However, some brokers offer the most favorable trading conditions.

Open a brokerage account

Russia

As for the Russian market, the exchange is the uncontested leader here FORTS. The most liquid instruments of this trading platform are futures for Gazprom shares, for the RTS index, as well as for leading currency pairs. In the domestic market, trading futures for beginners usually means choosing shares of Gazprom or Sberbank. Of course, the RTS index is characterized by greater liquidity, but such trading is accompanied by additional difficulties, so if you do not have experience, it is better to start with something simpler.

Of course, to trade on the FORTS derivatives market you also need broker. The most favorable terms of cooperation are offered by the well-known company Zerich.

• Firstly, it's worth noting colossal experience– the company has been operating since 1995;
• Secondly, the minimum threshold for entering the Russian market is only 30,000 rubles;
• Thirdly, the company installs minimum commissions.

Anyone can familiarize themselves with the additional terms of cooperation by reading. This article examines in detail the history of the formation and development of the company, current offers for trading on financial markets, and also presents visual instructions upon registration of the deposit.

Below you can watch a portion of the webinar that explains the difference between CME and FORTS

A practical guide to futures trading

Actually, we have figured out the main theoretical features of futures trading. However, the training does not end there, because in order to earn a stable income, you need to have in your arsenal all the necessary Practical skills. Now we will try to fully answer the most common questions that arise from traders who are going to invest money in trading futures contracts.

Where can I find a complete list of futures?

Naturally, every trader begins his work by selecting financial assets that could later be included in his investment portfolio. The article "" describes in detail what it is, as well as what rules must be adhered to during the formation of this portfolio. However, where exactly can you find a list of futures contracts available for trading? The full list is posted on the official website of the exchange.

Let's consider the procedure for searching for an asset using the example of the Chicago Mercantile Exchange.

1. In order to find the required contract in the trading platform in the future, you first need to define ticker trading instrument. Suppose we need to find gold.
2. Opening CME Group exchange website
   
3. After this, you should open the section “ Trading»-« Products" Among the subsections that appear, select “”
   
4. In the column “” you will see a contract for gold, it is designated as follows “ GC Gold»
   
5. We open detailed information on gold futures. In particular, you need to find a link to the specification of this contract
   You will need this link more than once during trading. The fact is that such a table contains universal information on the contract, including the instrument ticker, in this case it is G.C..

If you don't understand any section of the table, use Google's machine translation:

If you are uncomfortable viewing information through the exchange, use the website rjobrien.com . On it you can look:

• contact specification ;
• list of symbols ;
• futures calendar and other useful information.

The principle of selecting futures by date. What is the difference?

The specification of each contract states futures expiration date. As soon as the contract is executed, the actual result of the trading operation is calculated, that is, the seller receives money and the buyer receives assets. In futures trading, transactions are closed on a centralized basis through expiration absolutely everyone open positions. Also, for some instruments you can see that several contracts for one asset are traded; naturally, the delivery time is also different.

The execution date is indicated by a letter and the year by a number.. The symbol system is unified, that is, it is used on absolutely all exchanges on which futures are traded. The expiration date varies depending on the underlying asset. For example, execution of index and currency futures occurs at the beginning of the third week of March, June, September or December. As a rule, this is the 20th or 21st.

How do investors select futures by date?

It all depends on the trading strategy used. Conventionally, contracts are divided into long-term, short-term And medium term. Depending on his own preferences, the trader gives preference to one or another type. Below you can watch a video that very briefly explains how to properly read futures specification at CME.

Which futures have the greatest investment attractiveness?

This topic has already been partially touched upon earlier using the example of the Russian derivatives market FORTS. However, the principle remains the same, even if we are talking about American trading platforms. Popular indices always have the greatest volatility and liquidity: RTS, Dow Jones, S&P and others. However, again, it is worth emphasizing that only experienced traders understand how to trade futures of this caliber.

Popular currency pairs are also not particularly inferior to indices in terms of liquidity and volatility, but at the same time they easier to understand. We are talking about assets such as EUR/USD, AUD/USD, GBP/USD, CHF/JPY. Basically, there is always a demand for currencies with the dollar. Naturally, the volatility of an asset directly depends on the current trading session. You can always go the easiest way and purchase futures on shares of a popular issuer. If in Russia " Blue chips» can be called Gazprom or Sberbank, but in the USA it is Google, Apple, Intel and other well-known corporations. Also a win-win option would be trading futures on precious metals, especially gold.

The video talks about the five most popular futures in the US.

How many futures can you buy for 1000/5000/10000 dollars without leverage?

To answer these questions, we need to look at a specific example. First, you need to understand how the cost of one futures contract is formed? On the first day of circulation of the instrument, the price is set by the trade organizer - the exchange. Subsequently, futures quotes change under the pressure of supply and demand.

Clearing– write-off, as well as accrual of VO ( variation margin) is carried out daily 5 times a week, except holidays and weekends. Therefore, profit and loss are also calculated daily, and not only during the period of sale of a trading instrument. At the moment of opening a trading operation, a certain amount of money is frozen in the investor's account; it will not be available as long as the investor is the holder of this contract.

On exchange websites you can find complex and confusing collateral tables, which are extremely difficult for a beginner to interpret. Therefore, it is better to use a helper site rjobrien , on which it is located pivot table margin collateral. Alternative source - tradeinvest website (futures specification , margin requirements ).

Example

As an example, we use the same gold futures, which is located in the section CMX. Look in the column " Spec Init", which displays the initial margin. Let this parameter be equal to 10,125$ . This means that to purchase and stable trade such a contract, an investor will need a deposit of at least $12,000-13,000.

The next column displays the parameters of the maintenance margin, in our case this is the amount 7,500$ . If the deposit contains less than the specified amount, the so-called Margin Call. Accordingly, you will either have to record losses or deposit additional funds.

Concerning commissions, then it all depends on the broker. By collaborating with companies that were proposed earlier, the investor will be able to save on commission costs.

How many futures can you buy for $1000/5000/10000 with leverage?

The amount of leverage depends on the trading conditions offered by the selected broker. Most often there are companies offering a ratio 1:14 And 1:17 .

To understand the calculation scheme, be sure to watch the following videos. It calculates the number of gold futures contracts.

Trading algorithm

1. We determine the current value of the futures contract;
2. We look at the size of the guarantee;
3. We divide the deposit amount by the size of the collateral and get the number of available contracts.

Now let's look at an example. Let's calculate the number of gold futures contracts that we can purchase with a deposit of $1000, $5000 and $10,000. Just a warning: The calculations made are approximate and may vary depending on various trading parameters.

• Current value of a troy ounce 1268$ ;
• Warranty 6233 rubles or 109$ ;
• Leverage 1:14 .

We count the number of contracts for different depot sizes. We divide the deposit amount by the amount of the guarantee.

Thus, we calculated the maximum limit that the deposit can withstand. When entering a trade it is important don't forget about risk management and the inverse of leverage. Let's say you have $5,000 in your account, and you can buy 45 contracts with it. Since you are a smart trader, you limit your risk to 3% when entering a position. In money terms this is $150. This way you work with 1 contract. Depending on the situation, the numbers may change, however, forget about money management you have no right.

1. For novice investors, it is best to start with the Russian derivatives market, using highly liquid trading instruments: RTS index, Gazprom shares, currency pairs EUR/USD, RUB/USD. Trading futures contracts on these assets is characterized by excellent returns.
2. To line up trading system, you must first undergo appropriate training. Investors mainly use mechanical strategies based on the work of indicators. You can also use candlestick analysis tools. To do this, I recommend that you read the article “”.
3. Before you start trading with real money, carefully hone your skills on a practice trading account. It is also advisable to select two markets at once in which the effectiveness of strategies could be tested.
4. Develop your own risk management system, in order to constantly monitor the size of the trading account and reduce the likelihood of a complete loss of the deposit.
5. Enter into a user agreement with one of the previously proposed brokers - Zerich or Just2Trade.

Video series for beginners and more

Watch the training webinar conducted by the director of the company's school of stock exchange skills Zerich. After watching it, you will learn how to trade futures through the trading terminal QUIK.

Another video explaining principle of making money from oil using futures.

Results

We looked at the key features of trading futures contracts. This is a truly profitable derivative financial instrument. Therefore, provided serious attitude towards trading, you can achieve a positive result in the shortest possible time.

Thank you for your attention, dear blog readers! Subscribe to updates to keep abreast of the latest events and be the first to know about current news.

If you find an error in the text, please select a piece of text and click Ctrl+Enter. Thanks for helping my blog get better!