Profit limited to premium. These contracts have the following standard specifications:. Many traders use a combination of both technical and fundamental analysis. Buying gold as an anti-inflation hedge is the primary use of gold today. Leverage : Control a large investment with a relatively small amount of money.

A futures contract is a standardized contract that calls for the delivery of a specific quantity of a specific product at some time in the future at a predetermined price. Futures contracts are derivative instruments very similar to forward contracts but they differ in some aspects. Futures contracts are traded in futures exchanges worldwide and covers a wide range of commodities such as agriculture produce, livestock, energy, metals and financial products such as market indices, interest rates and currencies.

Trding primary purpose of the futures market is to allow those who wish to manage price risk the hedgers to transfer that risk to those who are willing to take that risk the speculators in return for an opportunity to profit. Producers and manufacturers can make use of the futures market to hedge the price risk of commodities that they need to purchase or sell in order to protect their profit margins.

Businesses employ a long hedge to lock in the price of a raw material that they wish to purchase some time in the future. To lock in a selling price for a product to be sold in the future, a short hedge is used. Speculators assume the price risk that hedgers tradinh to avoid in return for a possibility of profits. They have no commercial interest in the underlying commodities and are motivated purely by the potential for profits. Although this makes them appear to be mere gamblers, speculators do play an important role in the futures market.

Without speculators bridging the gap between buyers and sellers with tradig commercial interest, the market will be less fluid, less efficient and more volatile. Futures speculators take up a long futures position when they believe that the price of the underlying will rise. They take up a short futures position when they believe that the price of the underlying will fall. OptionsHouse is a full fledged Futures Basics of future and options trading gold Merchant that provides a streamlined access to the futures markets at extremely reasonable contract rates.

Buying straddles is a otions way to play earnings. Many a times, stock price gap up or down following the quarterly earnings report. For instance, a sell. Also known as digital options, binary options belong to a special class of exotic options in which the option trader speculate purely on the direction futire the underlying within a baics short period of time You qualify for golr dividend if. A most common way to do that is to buy futurre on margin It states that the futuer of a call option implies a certain fair price for the corresponding put option having the same strike price and expiration date, and wnd versa They are known as "the greeks" Risk Basics of future and options trading gold Stocks, futures and binary options trading discussed on this website can be considered High-Risk Trading Operations and their execution can be very risky and may result in significant losses or even in a total loss of all funds on your account.

You should not risk more than you afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Information on this website is provided strictly for informational and educational purposes only baiscs is not intended as a trading recommendation service. Next: Futures Contract Details Ready to Start Vuture Futures?

Trade futures now at OptionsHouse. To buy or fxcm margin requirements td futures, you need a broker that can handle futures trades. Click here to open a futures trading account at OptionsHouse. Futures Trading Basics Futures Contract Specs Futures Exchanges Futures Margin Long Futures Position Short Futures Position Long Tradinh Short Hedge Understanding Basis Options on Futures Synthetic Long Futures Synthetic Long Futures Split Strikes Synthetic Short Futures Synthetic Short Futures Split Strikes Crude Oil Futures Heating Oil Futures Gasoline Optiobs Natural Gas Futures Kerosene Futures Ethanol Futures Coal Futures Uranium Futures Gold Futures Silver Futures Platinum Futures Palladium Futures Aluminum Futures Copper Futures Zinc Futures Lead Futures Nickel Futures Tin Futures Corn Futures Soybeans Futures Wheat Futures Oats Futures Rice Futures Rapeseed Futures Coffee Futures Cocoa Futures Cotton Futures Sugar Futures Rubber Futures Live Cattle Futures Feeder Cattle Futures Lean Hogs Futures Pork Bellies Futures.

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Forex & Gold Futures Trading Strategies

Futures Basics: Print. Want to learn Gold: oz: $65, Please read Characteristics and Risks of Standardized Options and Risk Disclosure Statement. Gold ; Crude Oil; E-Mini The material contained in ' Futures Options Trading ' is of opinion only and Past results are not necessarily indicative of future. Options Basics: Options Spreads; Options when trading options with a where a country's currency or paper money has a value directly linked to gold.