T4Trade enables users to trade futures via the industry-standard MetaTrader 4 platform. This article will take a closer look at the futures market, identifying the different types of futures.
Also known as future contracts, futures are financial derivatives that have clear prices and expiration dates that are known beforehand. In simple terms, futures are derivative contracts to buy or sell a particular asset at a pre-determined price on a future date. This asset may consist of individual stocks, commodities like oil or sugar, cryptocurrency or another type of asset. Futures contracts are used by many types of financial players, including speculators and investors, as well as companies that actually want to supply the commodity or take physical delivery of it.
A futures market is an exchange where investors buy and sell futures contracts. A futures contract is made between a buying party who agrees to buy a given quantity of a commodity or security and take delivery of it on a certain date and a selling party who agrees to provide it.
There are various different types of futures, including stock futures, currency futures, commodity futures, metals futures and treasure futures. T4Trade enables both novice and professional traders to trade futures with expeditious execution and no requotes.
Futures trading on T4Trade’s platform has numerous advantages, including enabling traders to find opportunities in rising and falling markets and allowing them to speculate on the direction of underlying assets or securities. Traders can also hedge the price movement of underlying assets, thereby reducing the potential losses from unexpected price fluctuations.
Futures trading creates scope for increased diversification, providing traders with direct market exposure to underlying assets, enhanced flexibility and the ability to manage risk by diversifying their portfolio. Since futures contracts are leveraged, traders only need to deposit a small percentage of the contract’s total value while gaining increased market exposure. However, it should be borne in mind that traders also increase their exposure to negative market movements and that all trading involves risk, exposing traders to the possibility of losing all of their capital.
Operating via the MetaTrader 4 platform, T4Trade enables investors to trade futures with CFDs, providing instant access to a range of indicators as well as advanced charting facilities. T4Trade also provides traders with access to a wide variety of different markets, enabling them to speculate on the value of different currency, commodity, energy and index futures. Traders can trade with low barriers, enjoying efficient execution with deep liquidity.
Disclaimer: This material is for general informational & educational purposes only and should not be considered investment advice or an investment recommendation. T4Trade is not responsible for any data provided by third parties referenced or hyperlinked in this communication.