Futures Trading 2018: What is it & How to Trade | Beginners Guide

The Futures trading can be defined as a contract between two parties (buyer and seller), to buy and sell a particular asset at a fixed price and on a very specific date. Though a trading trend today, futures contracts were created to aid farmers when crop prices fluctuated, during the period between planting and harvesting. This grew into a trend for traders to speculate on and predict an asset's profit/loss. 

What are Futures Trading?

Futures are essentially a derivative - their value is derived from another commodity's price movements. Only the instrument's price will affect the value of a derivative, and it doesn't have an inherent value by default. Futures can be traded by anticipating the instrument's price movements. This is done by going long (buying) or going short (selling). Several traders speculate on this rise/fall and try to profit from the changing price of the contract. Right from eggs, to precious metals - futures contracts exist for several commodities! 

How to do Futures Trading in Vietnam

Futures are unlike other financial assets, solely because of their lack of inherent value. Additionally, a particular commodity can't be speculated for a long time because each futures contract has an expiration date. This makes futures trading a very sophisticated and volatile field to delve in. 

Basics of Futures Trading in 2018:

Futures trading are more than just a means to hedge; it is a provision to speculate on financial assets. The risks involved are very high - while the profits you make might just put you at a breakeven position, the losses will leave you tumbling! Intense amounts of research are required to ensure a healthy trade in futures. Several traders consider taking help from a professional broker when it comes to futures, because of the immense risks involved and the high levels of precision needed to avoid losses.

While trading futures, there is always an underlying element of risk. The second you decide to take a risk, you must be ready to sacrifice all your investments! It has happened on one too many occasions where the losses suffered were more than the investments put in. Futures brokers provide leverage, since buying a commodity is not financially doable; this leverage can be your downfall if you don't trade carefully! Only trade with your risk capital. Incurring leveraged losses will leave you drained of funds in no time! Only utilize money that you can afford to risk losing. 

Tips for Trading Futures in 2018:

1) Study the Asset Completely: The crux of futures trading lies in understanding the underlying asset completely. Traders fail to realize it isn't just the asset that's on the line; it's the accompanying factors as well! Handpick the instruments/commodities you think will move as you predict, then go on to study the factors that affect its movements. For example, if you're a wheat futures trader, just knowing the harvest duration won't help. You must know who the prominent wheat-buyers are, how the weather affects the crop market and the price patterns of all previous years. These are some of the various governing factors for a crop. Similarly, for other commodities, observe and research on the factors that will affect its presence in the market and govern how long it is on the top. 

2) Move on Your Own: Futures trading may look hard to conduct, but with ample research, you can definitely profit! Trading independently has a number of advantages; you can trade at your time, devise your own trading strategy, and other than the facilitation fee, there won't be a dime to pay anyone! However, this requires immense responsibility and attentiveness to pull off. Right from managing funds, to researching, to devising a strong plan - the entire ordeal will have to be handled by you and you alone! This hasn't prevented traders from pursuing it. Several traders are solo players in futures and are more than just successful at it.

3) Implement Stop-losses: Futures holds a lot of liquidity, which will work against you in no time. Profits always look attractive from the distance, but the closer you go the more you realize - the path to profiting in futures is laden with risks! Several traders choose to stick to losing positions out of pride, or hoping that the market will turn in their favor! Avoid such careless acts. An amazing way to keep losses in check without pressurizing yourself each minute is by implementing a stop-loss before hand. Stop-losses are mechanisms that are hugely beneficial in trading. Implementing a stop-loss will automatically withdraw your position once a losing trend is spotted or a certain loss amount is met. Risk management and loss minimization make up a huge part of your trading strategy.

Futures are a highly lucrative field with immense prospects of profits. However, the volatile nature of futures ecosystem makes it very liable! Assisted by WesternFX - the best at futures trading in Vietnam, you will not just learn, but excel in your ventures! Call us today to hire us.

5 Things To Keep in Mind While Trading CFDs

CFDs vary immensely from the other genre of trades. They are initially easy to enter but they are leveraged products. Meaning, getting the speculation off-point will lead to colossal losses. CFDs have one of the lowest initial investment rates, but this is compensated by the difficulty that follows a trade. Contracts for Difference leans more towards the speculation aspect than the technical aspect. 

If you are new to the genre, here are 5 things to remember while trading CFD:         

CFD - Things To Remember Before Investing

1)  What does CFD Mean? Contracts for Differences, these are tradable assets that allow you to speculate the movement of a particular financial commodity without actually owning it. The commodity can be stock, cryptocurrency, index, etc. A profit in CFD is obtained when your speculation for a commodity matches the outcome. What makes CFD a unique branch of trading is that you can make profits even when an asset's value is going downwards? This allows more room for profits, and subsequently losses as well. 

2) Margins and Leverages: Online trading needs an initial investment, to begin with. A margin amount is an initial amount you deposit which allows you to invest in a trade.  This amount varies from broker to broker. The only constant factor being - it is relative to your stop-loss amount. The margin requirement will be based depending on the money you're willing to lose in your stop-loss.

Leverage is a sum borrowed or given by your forex broker. Some trades involve humongous amounts of cash; this can be availed from your broker. Leverage facilitates trades for you by letting you participate in expensive trades. However keep in mind, if you are careless and incur a loss, you lose your money and you have to pay the leverage back. 

3) Buying Long and Selling Short: CFD is all about speculation. To profit in CFD trading, you need just speculate the commodity's price accurately. When you see a rising trend, buy long - this will result in you profiting from each move. Similarly when there's a downward trend, sell short. The fast-paced nature of CFDs however makes it a challenge to hold the same position for a long duration. 

4) Keep Your Spread in Your Head: CFD brokers' main source of income is the spread they charge you. While participating in CFD, it is crucial to keep the spread rates in mind. Your broker might showcase attractive trades that are more beneficial for him and you might end up losing more than you invested. 

5) Trade Closure: A key aspect to note when trading CFDs is that your account must have funds at all times. Your broker has the complete control over your account, should the said balance fall below the margin amount, he can close it. 

CFDs are easier to setup and get into, however once in the field, tread with caution! The overnight funding costs and high market volatility might throw you off track. Get yourself the best CFD broker to partner with - get yourself WesternFX. Equipped with our stellar platform and strategies, conquering CFD trading in Vietnam will be a cake-walk! Call us today to know more.

7 Things To Keep In Mind While Choosing A Forex Broker

The high liquidity of Forex has drawn traders and brokers alike. With online trading on the rise, the need for a secure broker is nigh. However, picking a broker to work with is easier said than done. Scammers are always lurking, waiting for the perfect newbie to exploit. Carelessness is needed not just when speculating charts. 

Here are 7 things to keep in mind while picking a Forex broker:

1)Regulation: A good broker is one who is regulated. When indulging in serious trading, it is always better to opt for a professional trading agency rather than partnering up with random brokers. Choose a broker who is regulated by a good financial institute. 

2)Security: When investing huge sums of money, security is the first thing you ought to check. Brokers will have a hand in the trade just as you do, so having a trustworthy agency backing you are necessary. 

3)Trading platform: The better the platform the better your trading experience. A good trading platform will come loaded with facilities to analyze and make better trades. 

4)Reliability: Trading isn’t a weight meant to be carried by the trader alone. A good broker will provide up-to-date information for every trade you make and will help plan out the routes to profits!

Forex brokers in Vietnam

5)Customer care: How much a broker makes himself available to you describes how good he is! Trades happen in a second’s difference; a good broker will provide stellar assistance through short and long-term trades.

6)Accurate data: No one knows the currency pairs better than a broker. Choosing a broker will lead you to have accurate data charts prior to every trade and the best plan to conquer each one!

7)Trading styles: Not every trader can trade short term. Some do short some trade long. Pick a broker who is comfortable with your style and whose style you’re comfortable with.

Online brokers are a tough pick. However, with one good agency, you can unlock levels of trading skills! Success will walk alongside you and the charts will be anything but intimidating. Hire the best – hire WesternFX! 

Our team of experienced brokers will lead you to and through the best deals! If you’re looking for the best Forex broker in Vietnam, you’ve come to the right place.