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Futurestrading

Futures Trading & Terminology ExplainedTrading futures is not for beginners and should only be attempted by experienced traders with a strong understanding of the market as a whole and especially a strong understanding of Risk Management & Trading Psychology. Below I have explained some of the Risks involved in Trading Futures: ------------------------- Liquidation When liquidation occurs your position is forcibly closed due to not having sufficient balance to keep your borrowed positions afloat. When trading futures on high leverage, your losses can quickly reach double digit percentages and if they exceed the remaining balance in your account you can be liquidated. ------------------------- Leverage Leverage, or to be leverage refers to the act of borrowing money off the exchange to trade. When a trader has insufficient balances to cover their leveraged position left in the account a liquidation call can occur. Keep track of your margin ratio and keep it low to prevent liquidations, and use risk management techniques. ------------------------- Volatility Market volatility can be high in emerging markets, and many traders love volatility for its big swings to profit, but in futures trading considering losses are potentially heightened by leverage volatility can become a dangerous thing to a trader. In volatile markets market stop losses can often trigger much further than the triggered price adding to losses, or even resulting in liquidation. ------------------------- Stop Hunting Stop hunting occurs when large entities such as corporations, or “Whales” purposefully target the stop loss orders of traders, knowing that at these areas when a large amount of orders is triggered a contrarian position can be acquired by these entities by buying or selling into a large stop trigger event, by doing this they can easily buy or sell a large amount of an asset when also having very little affect on the price in the short term. ------------------------- Exchange Downtime During extreme market movements sometimes exchanges can crash and traders are unable to login, close or open positions on the exchange, Liquidation events, Market Crashes, Manipulation, Volatility, Stop Hunting may all come into play when Exchange Downtime occurs and it is a risky endeavor to be positioned in borrowed money when a exchange is offline. ------------------------- Market Crashes Market Crashes, Black Swan Events etc. can occur frequently in emerging markets, infrequently in traditional markets. During Market Crashes huge cascades of liquidations can occur taking out over leveraged long traders. ------------------------- Manipulation Stop Hunting is also a form of Market Manipulation. Sometimes vested interests work together to hold down the price of an asset or push up the price to trigger orders, and shake out retail players. ------------------------- Overtrading Due to the heightened losses applicable from borrowed money, overtrading on futures/leverage can quickly wipe out your balance, it is key that you understand how to size your trades correctly as well as managing your risk and mental state to avoid this occurring.
COINBASE:BTCUSDEducation
by Worth_The_Ri5k
Palm Oil Prices Back to the Range of 4700-5200 Again?Palm oil prices closed higher and back to the range of 4700-5200. Several Factors that make the palm oil prices back to the range of 4700-5200 as below: 1. Weakness in soybean oil after US raised proposal to scale back biofuel blending mandates 2. Shortage of Workers due to coronavirus pandemic & higher cost of recruitment as palm oil producers make changes in response to accusations of forced labour 3. Record high fertilizer prices 4. MPOB showed higher inventories offset by lower production and higher exports Technical view: 1. Doji formed after range trading between 4724-4949- signal market struggle for new direction 2. Harami indicates reversal signal 3. Stochastic level= remain bearish signs Suggestion Trade: Buying at support 4700; Stop Loss 4600; Target Profit 4950-5000 Selling at resistance 5000; Stop Loss 5200; Target Profit 4750-4800 Disclaimer: Trading Carries Risks. Happy Trading!! Cheers. ** DISCLAIMER: FOR INFO ONLY. TRADING CARRIES RISK **
MYX:FCPO1!
by happytrading96
Futures Levels | Santa Rally - Naughty or Nice? (MES, MNQ, M2K)Let's take a look at potential key levels for the week, most notably the session lows from Friday. Will a Santa Rally begin to take hold, or is there more naughty action for the bulls? This weekend the crypto markets experienced a 15-30% decline, mostly looking like another scene from the movie "Horror For Over-Leveraged Longs." Given that backdrop, and the aggressive selling on Friday, I'd think the expectation would have been for a weak open for the futures stock indices. But so far, it's looking like the open following the prior Black Friday sell-off, and most markets are a tad green. Still, it's early, still. Stay Green & Trade Like You Mean It!
CBOT:ZNH2022
by RodCasilli