Since 1865, when the futures contract came into being in the USA, day trading
futures
has increased in thousands of times and the real volumes of this trade
does not know anyone. Indeed, The US futures industry has been growing
until recent events led the greatest economy to the deepest recession,
which they did not see since 1930's. Day trading capacity is
tremendous, but it may have some undesirable consequences though.
Online futures trading is another way to do the same thing and now most
of day trading futures
are conducted online, which is natural because the number of places at
exchanges are limited in comparison to the limitless capabilities of
the Internet. Despite the day trading futures rules are strict and
getting more and more strict, especially in the EU, the speculative
nature of day trading futures market
is unchangeable, otherwise, it is impossible to make profit and, thus,
move funds. The mechanics of speculations is pretty simple: in case the
price of futures contracts moves up, this relatively high leverage may
result to one's high profit compared to the initial margin. In
case the price goes down, the same leverage is producing large losses
respectively. Shortly, leverage is a sort of two-edged sword, which is
key in understanding how the whole thing works. One's own
anticipations are moving funds to buy or sell, and ticking indicators
shows the actual direction to loss or profit. All things are easy if
one understands them,
otherwise, one cannot get a clue at all. |