Forex Trading Secrets » Commodities Futures http://secretforextrading.com Secrets for trading in forex markets Tue, 07 Sep 2010 02:18:09 +0000 en hourly 1 http://wordpress.org/?v= Undestanding Commodity Futures and Option Contracts http://secretforextrading.com/undestanding-commodity-futures-and-option-contracts/ http://secretforextrading.com/undestanding-commodity-futures-and-option-contracts/#comments Mon, 13 Apr 2009 15:22:02 +0000 Forex Admin http://secretforextrading.com/?p=102 A futures commodities contract between two parties is a legal agreement to buy or sell a particular financial commodity in the future for which the exchange, quantity and price are predefined. The two parties will also agree on a specific date and time in the future to make this transaction, which is called as the ‘settlement date’. An option contract between two parties is a legal agreement that bestows the buyer, who pays the ‘premium’ or the market price within a particular time period, the right and not the obligation to exercise his option.

A buyer can exercise the option when he has signed a futures contract agreeing with a particular price called ‘strike price’ or the options contract can give the right to buy or sell the commodity directly. In the United States, an individual or firm has to trade on your behalf the futures contracts and options on futures contracts in the exchange. This individual or firm has to be registered with the Commodity Futures Trading Commission.

]]> http://secretforextrading.com/undestanding-commodity-futures-and-option-contracts/feed/ 1 Guidelines to Trade in Forex and Commodities Futures and Options http://secretforextrading.com/guidelines-to-trade-in-forex-and-commodities-futures-and-options/ http://secretforextrading.com/guidelines-to-trade-in-forex-and-commodities-futures-and-options/#comments Sun, 12 Apr 2009 20:05:05 +0000 Forex Admin http://secretforextrading.com/?p=100 Though trading futures and options is an extremely risky area to invest, this niche is growing rapidly in recent years due to the easy accessibility of instant updated data through the internet, which makes it possible for day traders to make substantial profits. Small investors are now able to invest and trade in this highly risky area with the same comfort, ease and speed of big companies.
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Before entering this high risk area of Forex trading you should:
• Make an honest review of your capabilities, both monetary and knowledge wise and decide on the amount to invest.
• Be aware of the commodity futures and option contracts and your responsibilities before making the actual investment.
• Make sure that you receive the risk disclosure documents from your broker and review it thoroughly.
• Gather as much information as possible and clear all your doubts before you take the first step to open a trading account.
• Know who to contact in case of trouble or if you have a question.

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