Don’t know much about the futures trading? Let’s cover all the things you need to know about this trading method.

Introduction Futures Trading

Futures trading is a financial trading method that involves buying and selling contracts for the future delivery of a commodity or financial instrument. These contracts are known as futures contracts. They specify the quantity, quality, and price at which the underlying asset will be delivered on a future date.

Futures can be conducted on a variety of assets, including commodities (such as gold, oil, and agricultural products), financial instruments (such as stock indices and interest rates), and more.

Futures contract typically refers to specific types of futures like oil, bonds, gold, and the S&P 500 index. These contracts enable you to agree on a price for an asset in the present that would be exchanged in the future. This contract is also known as the direct way to invest in oil. However, the term “Futures” is more general and refers to the whole market.

Purpose of Futures Trading:

• Participants use futures contracts to hedge against the price volatility of the underlying asset and reduce the risk associated with price fluctuations.
• Futures traders also engage to speculate on future price movements.
• Futures contracts, as mentioned above, are standardized agreements traded on organized exchanges that specify the quantity, quality, and delivery date.
• Furthermore, these future contracts have an expiration date. Which must be settled by either physical delivery or by cash settlement with assets.
• There are businesses or investors known as “Hedgers” who use these contracts to protect themselves against the adverse price movements in the market.
• These individuals or institutions are seeking to profit from price movements without the intention of taking physical delivery of the underlying asset.
• Futures trading often involves leverage, allowing traders to control a larger position with a smaller amount of capital. While leverage can increase profits, it also increases the potential for losses.
• It can be risky due to the leverage involved and the volatility of the underlying markets.
• It’s essential for individuals engaging in futures trading to have a good understanding of the markets, risk management strategies, and the specific instruments they are trading.
• Futures trading is typically conducted on regulated exchanges, such as the Chicago Mercantile Exchange (CME) and others, to ensure fair and transparent trading practices.
• Depending on the type of futures contract, settlement can occur through physical delivery of the underlying asset or a cash payment based on the contract’s value.

Understanding the Basics of Futures Trading

• Futures trading means a contract to buy or sell a particular commodity at a future date.
• The amount and the price of the commodity are fixed at the time of the agreement in future trading.
• Some contracts do allow the settlement of cash instead of delivery. However, some contracts contemplate that the agreement will be fulfilled by the time decided for the delivery of the commodity.
• Most contracts are wind up before the delivery date.
• A futures commodity option gives the buyer the right to buy or sell a particular futures contract at a future date and for a particular data.
• There are some limited exceptions, such that commodity futures and options must be traded through an exchange by a person or firm registered with the CFTC (Commodity Futures Trading Commission).

Traders of the Futures Market

• Most of the participants in the future markets are producers and consumers of institutional or commercial commodities.
• Most participants are “hedgers” who prefer futures to maximize the value of their assets and reduce the risk of losses from price changes.
• Some of the participants profit from changing prices in the futures contract.

Future Professionals Regulations

1. Companies and individuals should be registered with the National Futures Association (NFA) for handling customers or to give them trading advice. NFA is approved by the CFTC, which is a self-regulatory organization.
2. CFTC protects customers by requiring market risks and past performances to be revealed to potential customers.
3. Customers funds are kept in a separate account from the firms’ funds.
4. Also, customers’ funds are adjusted to reflect the trading of each day of current market value.
5. The CFTC also monitors internal controls and sales practice compliance programs.
6. Furthermore, the NFA also provides detailed information for traders.

Things to Consider Before Purchasing Futures Commodity

1. Firstly, consider your financial experiences, resources, and goals.
2. You must understand all the obligations of any contract before you purchase.
3. Ensure to review the risk disclosure documents provided thoroughly they are provided to you by the broker.
4. Make sure you know whom to contact when there is a problem or question.
5. You should ask questions and gather all the information that you need to know before opening a trading account.
6. Like other markets, Futures have risks, like many investors losing all their money and being required to pay more than the money they invested initially. You always have to be cautious.

Before you engage yourself in a futures trading participant, you must understand the markets thoroughly.
You also should have a solid trading plan and be aware of the risks involved.

Many traders also use technical analysis, fundamental analysis, and risk management strategies to inform their trading decisions. Additionally, it’s advisable to stay updated on market news and events that may impact the prices of the underlying assets.

Difference Between Futures and Forwards

A forward is just like futures in that it specifies the exchange of goods for a specified price and date. But a forward can not be traded on an exchange and also doesn’t have interim partial payments due to marking to market. Moreover, forwards have the risk of credit, whereas futures do not.

Wrapping Up

Futures trading is one of the most popular ways of trading. It involves buying and selling contracts for the future and specifying the quantity and quality. And the price at which the underlying asset will be delivered on a date set in the future. Before buying or selling futures commodities, here are some of the things mentioned above that you should consider. Hope you find this article helpful!

Have you ever wondered why the forex market sometimes moves more rapidly, literally in the blink of an eye, and you are not ready for this kind of change? In this article, we have shared how you can prevent this type of change. Be ready to avail profitable opportunities with the help of a forex expert advisor.

What is a Forex Expert Advisors and Its Types

Expert advisors are also known as EAs or Forex robots that are used with the MT4 Forex trading platform to enhance your currency trading. Whether fully automated trading or simple expert advising, such as signals, you can decide whether to act or not.

An expert advisor is a software that automates trading functions based on algorithms. MT4 EAs use a mathematical model based on trade signals to search and suggest perfect entry and exit points in trades. Most profitable EAs also collect trading data from the forex market and deliver analytics to the forex trader. Best expert advisors are customizable, and traders can program them to use their desired trading strategy.

Types of Forex Expert Advisors

In the Forex market, five types of expert advisors are usually used for trading, that is mentioned below.

• The News Expert Advisors

These types of EAs will analyze financial news and identify strategic trades based on the changes that happen in their wake time. With this expert advisor, you don’t have to watch the news to know whether the values of currencies will rise or drop.

• The Breakout Expert Advisors

These Expert advisors will continuously do technical analysis of the market and let traders know when they think big changes are coming.

• The Hedge Expert Advisors

These EAs will open opposing positions, which will reduce your risk and profits. The hedge EA will let you know the best time to sell to cut your losses. Before starting hedge forex, ensure you understand the algorithm of hedging no matter if you are a beginner or experienced trader.

• Scalper Expert Advisors

These EAs track the goal to secure small profits once they are available. These expert advisors will open and close an endless amount of orders for any profit and could trade up 400-500 times a day, depending on market conditions.

• Adaptive Expert Advisors

Under this category, EAs can be set to react in different ways to different moments in the market. It is the most flexible and customizable expert advisor.

Benefits of Using the Best EA

On the internet, thousands of expert advisors are available for MetaTrader 4 or MetaTrader 5 platform. It is a complicated task to choose the best from them. However, all the EAs are not perfectly coded, and if the code is not perfectly written, the EA is not working accurately. Buying and using broken EAs significantly harms your money and trading experience.

However, the most accurate expert advisor is Trendonex, that are perfectly coded to provide accurate trend identification and smart entry points.

• EA, like Trendonex, helps you to automate your trading strategies.
• Trendonex for MT4 helps you identify multiple opportunities, deeply monitor the market, analyze factors rapidly, and trade accordingly.
• An EA like Trendonex can help you manage your risk with built-in stop loss and take profit functions for every trade. Additionally, you can use the breakeven and trailing stop features to minimize your risks further.
• The best forex EA also assists you in trading in a more disciplined manner by taking out the emotional factor of trading.
• Forex expert advisors are active 24/7 and do not need to take a break like humans.
• Additionally, by using the best EA, like Trendonex, there will no longer be a need to hire a specialist.

How to Productively Use MT4 Expert Advisor

The best expert advisors for MetaTrader 4 need a powerful computer and an excellent internet connection. Since they work online and 24/7, they require a system that can always be online and work smoothly. Getting the right hardware resources for profitable trading with MT4 expert advisors can get expensive, especially for new forex traders.

EAs are perfect for automated forex trading, but they still cannot remove issues that rely on third-party causes. There are issues like a delay that can cause you slippage in trades or the opportunity to place a great trade on time. These problems are mainly a result of poor internet connection or physical distance from your forex brokers.

These problems might seem disappointing, but every problem has a solution, too. The solution to all of these problems is forex virtual private servers, also known as VPS. These virtual private servers are located in all the Forex market hotspots. Traders can always find a Forex VPS in a location close to their broker to prevent delay. However, they work 24/7, which means if you are occupied or asleep, your Forex VPS is online and MT4 expert advisor is trading without internet interruption.

Reasons to Use EAs in Forex Trading

• Emotional Factor

Emotions impact the trader’s decision by creating greed, fear, excitement, and anger. Since financial assets are involved, emotions can impact directly and instantly, resulting in bad-quality decisions. So, if you are an emotional trader, using EA is a good choice to boost your decision-making process. An EA makes decisions without emotions, and it is free of fear and greed.

• Short-term Trader

A short-term trader continuously watches charts and should respond to short-term volatility and make more trades than long-term investors. Responding to all the ups and downs in the market makes a trader emotional, and it will impact their decision capability.

• Optimize an Expert Advisor

For someone who has built optimization skills and can optimize in less time and more frequently. So, for them, it is the best option to run an EA.

Final Words        

In this article, we have shared all the beneficial information regarding the forex expert advisors for the MetaTrader 4 platform. No matter what type of EA you are using for trading, don’t forget to get the services of forex VPS to run an expert advisor without any interruption.

Don’t know much about the Forex Trading market and the strategies used in that?

The Foreign Exchange Trading Market or commonly known as the Forex or FX market. This marketplace is global and is open 24 hours a day on weekdays. And it is the best place to trade your assets. FX trading is conducted OTC (over-the-counter), which means there is no physical place to exchange assets.

Rather than using a central exchange, like the New York Stock Exchange, the FX market is operated and monitored by a worldwide network of banks and financial institutions.

Understand the Forex Terms

Every marketplace has its terminology, and before entering the trading market, these are the important words to know before engaging in FX trading.

• Currency Pair: All trades require a currency pair. Additionally, to the common, there are also less common trades such as exotics, which are currencies of developing countries.
• Pip: Pip is considered the shortest percentage in points, and a pip refers to the minimum possible price change within a currency pair. Therefore, FX prices are quoted out to at least four decimal places; a pip is equal to 0.0001.
• Bid: The exchange rates are determined by the maximum price that buyers are willing to pay for a currency is called a bid.
• Ask: The exchange rates are determined by the minimum price that sellers ask to sell the currency is known as ask.
• Spread: It is the fees that apply on the transaction between bid-ask is called the bid-ask spread.
• Lot: A lot is a unit measuring a unit of currency. Forex commonly deals with specific amounts called lots, or basically the number of currency units you sell or purchase. There are four lot sizes available to trade: Standard (100,000), Mini (10,000), Micro (1000), and Nano (100).
• Leverage: Because of large lot sizes, some traders may not be ready to put so much amount to execute a trade. Leverage is the term for borrowing money, which allows traders to participate in the foreign exchange market without the money otherwise required.
• Margin: Trading through leverage is not free; traders must deposit some money as a security amount known as a margin.

6 Facts about Forex Market

1. The Forex Market is Enormous: Foreign exchange FX is the world’s most traded market, with over $7.5 trillion being traded regularly. To put it in view, the daily average volume for the S&P 500 is 2.27% of the FX traded volume means 553 billion US dollars.
2. Perhaps you have Already Traded Forex: When you travel to another country, you have to exchange your currency for foreign currency to spend money there. Sometimes, you don’t even completely spend that currency, and you will convert it back to your own country’s currency. This procedure is known as FX.
3. Currencies are Available in Pairs: You are always trading one currency with another, for instance, the US dollar against the euro (USD/EUR). It is known as an FX pair.
4. Potential Opportunities: Forex is an unexpectedly liquid market, and it is rapidly changing all the time. It makes it especially attractive to traders looking for short-term gains.
5. It is a Decentralized Exchange: As you know, stocks use exchanges such as New York Exchange. However, FX is traded by an OTC means there is no physical exchange; it is a decentralized global network of banks.
6. The Forex Market Never Sleeps: This market is open 24 hours a day, five days a week, from Sunday 5 PM to Friday 5 PM. It is why the time zones of the four trading centers, London, Sydney, New York, and Tokyo, extend over with each other, so when one closes, another opens.

How does Forex Trading Works

FX traders trade a currency pair, the two different currencies quotation paired together. A currency pair significantly tells traders the current market price of one currency against another. A three-letter code denotes every currency pair. These two codes are usually two letters representing the region where the currency belongs and one letter representing the name of the currency itself. For instance, the currency code of the U.S. dollar is USD, and the currency code of the British pound is GBP.

In a currency pair, the first currency is the base, and the second is the quote. The quote shows how much of the second currency you can get with one unit of the first. For example, if the EUR/USD quote is 1.06, it means 1 euro is equal to $1.06.

Pros and Cons of Forex Trading

FAQs

What is the benefit of the Forex?

This market has many benefits if you have strategies to survive in the market. It will help you to earn lots of profit when you can convert large amounts of foreign currency.

How is forex profit calculated?

The FX profit can be calculated by multiplying the size of the position (traded units) by pip movement or simply just multiplying the pip movement.

Can I day trade with $100?

Yes, you can start trading with $100; however, it also depends on the broker. Some brokers may ask for more than $100 for the deposit.

Wrapping Up

To conclude, Forex trading is a great market. It offers accessibility and profit potential but involves risks like leveraging and market unpredictability. But through the predetermined logic that EA possesses the risk in the trading can be reduced or at least can detect the risk before time. Now, this can help the trader to make a decision suitable for him and according to his risk tolerance.

Don’t know much about the MT4? It is the most popular platform when it comes to trading. And we will walk you through all the details about the widely used forex trading platform.

What is MetaTrader 4 (MT4)?

MetaTrader is a widely used and very popular electronic platform for online foreign exchange (forex) trading. They released many versions like MetaTrader 4 and MetaTrader 5. MT4 was developed using the MetaQuotes software in 2005, and five years later, in 2010, MT5 was released.

Despite the MT5, the traders globally preferred the MetaTrader 4 due to its simplicity and reliability. It has been a thriving marketplace for trading tools and strategies. MetaTrader 4 also has a very user-friendly interface; advanced charting tools make you capable of automated trading. It allows you to execute trades at any time of the day in the foreign exchange market.

How does MT4 Work?

MT4 is the best electronic trading platform and is widely used for foreign exchange trading. And has been gaining popularity ever since its release in 2005 because of its robust features and user-friendly interface. As mentioned above, it supports automated trading with the help of Expert Advisors (EA). Now, the expert advisors are capable of executing a trade on your behalf using a predefined strategy and finding the perfect opportunity for you using their algorithm.

It is available for all devices, including phones and tablets, allowing you to trade whenever and wherever manage your account according to your preference, and conduct transactions on the go. Furthermore, MT4 is known for its security features and provides encrypted communication between the user’s device and the trading server.

Some Key features of the MetaTrader 4 Platform

Here are some of the key features of the MetaTrader 4:

1. User Interface: MetaTrader 4 provides the trader with a user-friendly interface with customizable charts, allowing the trader to analyze market trends, patterns, and movements. It also helps the trader to make a sound decision before you start trading.
2. Charting Tools:  The MetaTrader4 platform offers a variety of Expert Advisors that signal or indicate. They also offer various tools and chart types. These EAs also enable traders to conduct in-depth analyses of price movements and make informed trading decisions.
3. Automated Trading: Among some of the amazing features in MT4, a standout feature is its support for automated trading through Expert Advisors (EAs). Traders can create or purchase these automated scripts to execute trades on their behalf based on predefined trading strategies.
4. Mobile Trading: MetaTrader 4 is also available as a mobile app for smartphones and tablets, allowing traders to manage their accounts and execute trades whenever and wherever they want to.
5. Multiple Asset Classes: The MT4 is the most commonly used platform for forex trading. It also supports trading in other financial instruments, such as commodities, indices, and cryptocurrencies.
6. Technical Analysis: MT4 supports a wide range of technical indicators, line studies, and chart patterns. This will help and guide traders in making technical analysis-based decisions for their trading.
7. Security: MetaTrader 4 is a protected and secure platform. It provides encrypted communication between the trader’s device and the trading server. To ensure the privacy and integrity of financial transactions.
8. Community and Marketplace: Traders can also access a community of fellow traders using MetaTrader 4. They can also access marketplaces as well where they can find and purchase trading strategies, indicators, and other tools developed by third-party vendors.

The Relationship Between MT4 and Forex Expert Advisor

MetaTrader 4 as a platform offers traders a comprehensive toolkit for technical analysis charting and order execution. EAs, on the other hand, is a specialized software program that is written in MetaQuotes Language 4 (MQL 4) specially designed for the MT4 environment. They can be tailored according to the preference of each trader to match their specific and unique trading style, as they can execute automated trades on predefined rules and strategies.

The MT4 platforms support backtesting and enable traders to assess the historical performance of their EAs before placing them in real-time trading. MT4 and EA’s programmed logic together make it easier for the trader to sit back and enjoy the profits he earns. EA remains adaptable to changes in the condition of the market by providing traders with a systematic approach to implement their strategies.

Advantages of Trading on the MetaTrader 4 Platform

• Easy to use for trading because of its user-friendly interface.
• It also has a trailing stop-loss facility.
• It is a platform multi-language, making it accessible to traders around the world.
• MT4 has relatively low system requirements, making it accessible to traders with various computer setups.
• It encourages the use and development of expert advisors as they actually are very useful.
• MetaTrader 4 has a vibrant online community where traders are able to share ideas, strategies, and indicators. Furthermore, there is a marketplace where users can find and purchase custom indicators and EAs.
• It is protected and allows encrypted communication between the trader and the server.
• Traders here can have access to historical price data, allowing them to conduct thorough analyses of the forex market. And help them make well-informed trading decisions.
• It also provides clients with a real-time account summary, which includes floating profits and losses and account equity.

Wrapping Up

The MetaTrader 4 is a great and widely used platform for trading. MetaTrader platform and the EA, a programming software used on MT4 for automated trading, have been of great help to traders. When these two work together, it becomes really easy to trade with the EAs’ predefined logic and strategies and with the encryption and security of the MT4. Furthermore, in this blog, we have mentioned all the key features, advantages, and almost everything about the Meta Trading platform that has been discussed hope you find this helpful.

Have you ever thought about how to access worldwide data to make informed decisions regarding buying and selling of assets? Let’s read this article and take an in-depth look at trading Economics to make profitable decisions in the world of finance.

What is Trading Economics

It is an online data provider site that gives its users accurate information for 196 countries, including historical data and predictions for more than 20 million economic indicators, exchange rates, stock market indexes, government bond yields, and commodity prices. This data for economic indicators is based on official sources, not third-party data providers, and the facts are checked daily for inconsistencies. It has received about 2 billion page views globally.

The software covers page offers a heat map and a table that provides a vast range of economic data on several geographic regions. Economic data is represented on the home page, including year-over-year stock price changes, currency fluctuations, bond changes, GDP growth and inflation, quarter-to-quarter GDP growth and jobless rates, and many more. Geographical regions include different regions of Europe, Asia, America, the Middle East, and the Asia Pacific regions.

Which Type of Data Trading Economics Provide

Data from 196 Countries

Every country’s economic data is provided on this platform. The list of countries can be approached by hitting on countries at the upper side of the page. The data provided are filtered out by the entity from which the data is supplied.

For example, categories of data given for the United States consist of National Statistical Data like Balance of trade, current account and unemployment rate, federal reserve data including consumer price index and gross domestic product additionally broken by industry and state. Furthermore, capital personal income, International Monetary Fund data and statistics, and World Bank data. The collection of data provided for each country is splendid.

2 Million Plus Indicators

The indicators section at the upper side of the home page gives the ability to see country and regional data on multiple commonly used economic indicators, contains GDP growth rate, interest rate rank, jobless rate rank, and immense World Bank indicators. Every separate page provides the ability for users to select the region.

However, the Charts display the top countries for the selected economic indicator. The table at the end of the page displays the data for every country in the selected region and can be exported into Excel. News for the associated economic indicator is displayed at the bottom of the page.

Trading Market Insights

In Trading Economics, the last section is Markets lists country and regional data for exchange rates, stock markets, government bonds, and commodities. In the exchange rates section, the current exchange rate and the weekly, monthly, yearly, and year-to-date percentage modification for every current pair are provided.

Furthermore, a chart is displayed, and the data in the table can be exported. Similar data is provided for the stock market, government bonds, and commodities pages. It offers a wealth of economic data free of cost. It offers a convenient aggregation of all kinds of reports released by government bureaus all over the world.

Who Takes Benefit from Its Data?

It is utilized by a vast range of individuals and organizations based on investors, traders, economists, analysts, and policymakers. Investors and traders use this tool to make enlightened decisions about selling and purchasing assets. Economists and analysts utilize the data to conduct research and make predictions. However, policymakers utilize the data to make decisions about economic policy.

Salient Features of Trading Economics

• Economic Indicators: This website provides a huge database of economic indicators, including GDP, inflation, interest rates, exchange rates, and many more. You can customize the data by choosing desired countries, indicators, and periods. The site also offers historical data going back to different decades and predicts the future.
• News and Analysis: It provides news and analysis on the newest economic events and trends globally. You can read articles, reports, and charts that offer insights into the worldwide economy.
• Customizable Dashboards: It allows you to create customizable dashboards that show the economic indicators that you will find most convenient to use. Furthermore, you can choose specific countries, indicators, and periods to build a personalized view of the data.
• API Access: It provides API access to its data and gives access to developers to create custom applications that utilize economic data and analysis.

How to Find Data on Trading Economics

• Choose Countries and Indicators: You can choose the countries and indicators that are most appropriate to you. The website provides data for over 196 countries and a wide range of economic indicators.
• Customize the Data: You can customize the data by choosing specific periods and adjusting the frequency of data. This website also gives the option to download the data in multiple formats, including CSV and Excel.
• Analyze the Data: You can analyze the data utilizing the site’s various instruments and features, including charts, graphs, and customizable dashboards. The website also provides news and analysis on the newest economic events and trends globally.

Pros of Trading Economics

1. Vast Economic Data: It provides comprehensive data on the worldwide economy, including historical data and predictions. The website gives a vast range of economic indicators, allowing users to analyze the depth of data.
2. User-Friendly Interface: It has a user-friendly interface that makes it easy to navigate and analyze the data. The site also provides several tools and features that allow users to customize the data and build personalized dashboards.
3. Real-Time Updates: This platform provides real-time updates on the latest data releases and economic events. It allows users to stay up-to-date with advanced developments and make well-informed decisions based on current market conditions.
4. API Access: It also caters to API access to its data, allowing developers to create custom applications that use economic data and analysis. Moreover, it makes it a valuable instrument for businesses that need to incorporate economic data into their functionalities.

Cons of Trading Economics

1. Paid Subscription: While it provides a lot of data for free, some functions require a paid subscription. It can be a negative point for individuals and businesses on a tight budget.
2. Data Quality: The quality of economic data can alter from country to country, and it relies on data from several sources. Therefore, there may be some deviations or errors in the data.

Final Words

In this Trading Economics guide, we have described all the features of this online data provider platform. It is an essential tool for individuals, businesses, and governments all over the world. However, it provides an extensive database of economic indicators, historical data, and deep insights into the world, making forecasting easy and hassle-free.