The method of buying and selling the future contracts is known as Futures Day Trading. If you want to be a successful futures day trader, then you must have good knowledge, discipline and experience. Daily trading future market has many stipulations which clear the knowledge about the market parameters like the tick size and the symbol. The future trading is very active, and it is a fact that the market price is very high, and also the trading volume. Without any restrictions one can trade the future, and so it is preferred by the US markets.
You will find that the trading has much liquidity and price movement along with the fact that the future markets are available with many essential instruments. Stock indexes, currencies and commodities are some of the underlying instruments. The future trading follows the up and down directions trading policy. If the trader wants to move upward, then he must buy the contracts which will help him to enter the long trade, and if he sells the contracts then he will move out of the trade. The short trade is just the opposite of the long trade. When a trader wants the market to move downwards, the he takes the help of this. Here he has to enter the market by selling the contracts and exit by buying the contracts.
In the case of multiple contracts the same process is followed, but for each of the contracts separate entries and exits are made. Same number of entries and exits are to be made for the specific trading market is the only measure that is to be maintained in this trading. No matter whether the market goes up or down the advantage for traders is they always gain profit and so they are much interested in the type of the trading than the direction.
The agricultural products like the wheat, coffee, fruit, cotton, rice, along with some commodities like FX, energy products and real estate are considered to be the main ingredients of the future trading system.
A few important future contract specifications are symbol, expiration date, exchange, and tick size and value. It is important to understand the combination of exchange, symbol, and expiration date to get a fair idea of current market and contract. Tick size and value are a few of the elements that specify the price, profit, and loss potential of the market.
The future contracts remain valid for a certain period of time. When it gets expired, then the traders have to update the software for the next contract. Generally the future contracts remain effectual for about 3 months, and they expire in the months of March, June, September and December. Though there are some exceptions like some of the future trades will expire more frequently. In the market profiles, you will get the complete contract specifications for the popular future trades.
It is a beneficial point about the future trading that you do not have to hold the position overnight and hence, you are relieved from any open position worries. In a very short period of time, one can easily learn a lot about the future markets.
To be a successful future day trader one need to be patient and disciplined. If you want to avoid big losses then you need to be fully prepared for day trading futures.