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The Little Book of Trading: Trend Following Strategy for Big Winnings
A futures market is an exchange where investors can buy and sell futures contracts. In typical futures contracts, one party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date. That is, your plan should factor in if you’re a technical analyst or if you use fundamental analysis in your trading.
Understanding Forex Futures
Forex futures are exchange-traded currency derivative contracts obligating the buyer and seller to transact at a set price and predetermined time. Trading futures can be lucrative, but the flip side is that it’s risky, especially in commodities and goods whose prices may prove to be highly volatile. That’s why traders may decide to make hedged bets in the futures market, helping to limit their risks while still making attractive profits. Exchanges may offer a calendar spread as a separately traded product with a reduced margin requirement due to its hedged nature. However, traders can always “leg into” a spread (that is, buy the two legs of the trade at different times), for example, if they want to hedge a position later on.