Page 2 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

INDEX

TOPICS Page#

INTRODUCTION TO FUTURES MARKET 4
Futures Markets: What, Why & Who 5
Market participants 6
1. Hedgers 6
2. Speculators 7
3. Floor traders 7
What is a futures contract? 8
Why delivery? 8
The process of price discovery 9
After the closing bell 9
The arithmetic of futures trading 10
1. Trading 11
2. Margins 11
3. Basic trading strategies 12
i. Buying (going long) to profit from an expected price increase 12
ii. Selling (going short) to profit from an expected price decrease 13
iii. Spreads 14
Participating in futures trading 15
Deciding how to participate 15
1. Trade your own account 16
2. Have someone manage your account 17
3. Use a Commodity Trading Advisor 18
4. Participating in a commodity pool 18
Regulation of futures trading 19
1. A word of caution 20
Establishing an account 21
If a dispute should arise 21
What to look for in a futures contract 22
1. The contract unit 22
2. How prices are quoted 22
3. Minimum price changes 22
4. Daily price limits 22
5. Position limits 23
6. Understanding the risks of futures trading 23
7. Choosing a futures contract 23
8. Liquidity 24
9. Timing 24
10. Stop orders 24
11. In closing 25

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