Futures Spread Trading

How professional traders optimize profits

Futures spread trading is probably the most profitable, yet safest way to trade futures. Almost every professional trader uses spreads to optimize his profits. Trading spreads offers many advantages which make it the perfect trading instrument, especially for beginners and traders with small accounts (less than $10,000).

The following example of a Soybean-Spread shows the advantages of futures spread trading:

Example: Long May Soybeans (SK3) and Short November Soybeans (SX3)

Four Advantages of Futures Spread Trading

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Forex FAQ

What is Foreign Exchange?
Where is the central location of the FX Market?
Who are the participants in the FX Market?
When is the FX market open for trading?
What are the most commonly traded currencies in the FX markets?
Is Forex trading capital intensive?
What is Margin?
What does it mean have a ’long’ or ’short’ position?
What about terms like "bid/ask", "spread", and "rollover"?
What is the difference between an "intraday" and "overnight position"?
How are currency prices determined?
How do I manage risk?
What kind of trading strategy should I use?
How often are trades made?
How long are positions maintained?
I am interested in foreign exchange trading, but would like some additional information. Any suggestions?

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What makes a good Trading Strategy?

Ask most NEW traders, and they will tell you about some moving average or combination of indicators or a chart pattern that they use. This is, as the more experienced trader knows, an entry point and not a strategy.
Any trader who is more experienced will say a strategy should also include money management, risk control, perhaps stop losses and of course, an exit point. They might also say that you must let your profits run and cut your losses short. A well-read trader will also tell you that your strategy should fit with your trading personality.

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How To Choose A FOREX Broker

Most investors who trade FOREX stocks use a broker. A broker is an individual or a company, who buys and sells stocks according to the investor's wishes. Brokers earn money by collecting commissions or fees for their services.You should check that a broker is registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud or abusive trade practices. A FOREX broker also needs to be associated with a financial institution, such as a bank in order to provide

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