Finding out the Right Futures Trading Account

In this section, we will provide you some information that would help you decide which future trading account is right for you based on your personal needs and objectives for your business.

One of the many reasons why most of our website visitors frequently visit us because of the idea of online trading, which is one of the very popular and efficient nowadays due to the technological growth. However, when deciding to trade online, traders, especially the new ones should consider asking yourself the following questions:

  • Am I an experienced or inexperienced trader?
  • Are you looking to day-trade or longer term trade?
  • How much time do I have to follow and monitor the markets?
  • Do I really need to follow the markets’ movements?
  • How much risk capital am I willing to start with?
  • What are my financial goals?
  • Am I looking for advice?

In our more than a decade of experience in these business-services, traders usually fall in the following categories:

  • Clients who are looking to day-trade actively
  • Clients who are looking to take advantage of different commodity markets and do not have much trading experience
  • Clients who have knowledge and experience but do not have the time or the willingness to be in front of the computer the whole day

Here’s what we can say: For those whose main goal is day-trading, we highly recommend online trading. It is also recommended to explore what’s in online trading, study individual trading platforms and above all, scrutinize the commission structure of each online trading site (including us), so that you can decide which Future trading account is right for you.

For those who do not have much trading experience, you are categorically under the newcomer category. Since you are new in this trading, we advise you to contact us and speak with one of our seasoned and licensed brokers. He or she will guide you and discuss to you some of the different yet safe routes in managing your account.

The last category falls under those who have substantial knowledge and experience but do not have the time or willingness to monitor and to be in front of the computer the whole day. We are happy to inform you that we can discuss to you thoroughly our different trading systems aside from our available auto trading programs with the support of our brokers. All these services can be available anytime you decide to trade with us, because we are here to serve you and match your needs with our services. Please see our contact information for more details.

 

Commodities Futures and Options Trading

Over the years, Commodity trading has gained a negative reputation due to the fact that some people or those who are new in this kind of trading usually lose their money because it is being too risky for the average individual.

The truth is that commodity trading is only as risky as you want to make it. Those who treat trading as a get-rich-quick scheme are likely to lose because they have to take big risks. If you act prudently, treat your trading like a business instead of a giant gambling casino and are willing to settle for a reasonable return, the risks are acceptable. The probability of success is excellent.

The process of trading commodities is likewise known as futures trading. Unlike other kinds of investments, when you trade futures, you do not actually buy anything or own anything. You are speculating on the future direction of the price in the commodity you are trading. This is like a bet on future price direction.The terms "call" and "put" merely indicate the direction you expect future prices will take.

Commodities like metals, energies, grains and exotics can be traded in our company. Our price is based upon the futures prices, as the futures markets for these products are highly liquid and offer the most appropriate market hours. Again with our usual risk protection, you can rest assured that you can limit your exposure to fit your needs.

At Shigesuke, you can trade Gold with us based on the spot market, including also some other metals on the Futures market. It is a fact that in spot markets, commodities are usually traded in cash with immediate delivery while in futures markets, there is a contract to call or put an underlying instrument at a date in the future at price being agreed upon. Our firm gives the best options and trading experience to our clients by giving those options whether spot or futures markets as the source of the reference pricing, following the liquidity and market hours. We look to offer you the tightest spreads in all these markets.

Here is a basic example on how a commodity is being traded in our company.

Example: Buying spot Gold

Opening a position: You consider the possibility that the gold price is going to rise. Our quote is 750.3/750.8. You buy forty flexiCFD at 750.8. Each contract is equivalent to 10 ounces of gold. This gives you a tick value of $40.

Interest : Once you have taken a long position in this particular transaction, your account is debited to reflect interest adjustments. It is calculated daily by applying the relevant interest rate to the nominal value of your position.

Closing the position: The gold price rises and our quote is now 755.8/756.3. You take your profit and sell the forty flexiCFD at 755.8. Your profit is calculated as:

Closing price 755.8

Opening price 750.8

Difference 50 ticks

Therefore, profit is 40 flexiCFD x 50 = $2000.

In the same way, if you think the price is going to fall, you can sell short position. If so, you will receive interest for the time that you hold this position, based on $ LIBOR. For your risk protection, , you can place a stop loss order on any metals flexiCFD, enabling you to control exactly how much you trade, according to your risk appetite. For more details, See: Commodities Futures and Options Contract Specifications
(Note: this example is using a trading account with USD as the base currency)

Symbol Last Chg Open
CL1004 82.08 +0.59 212,892
HO1004 211.62 +2.64 72,973
NG1004 4.49 -0.02 168,440
GC1003 1,107.80 -14.20 270
HG1003 335.00 -4.80 2,832
PL1003 1,588.30 -6.70 2