Introduction to Futures Trading show


Presentation Description

A simple introduction to Futures Trading. Get free tips at


By: nitin.parasuram (112 month(s) ago)

gr8 jobb done sir... very good

Presentation Transcript

Slide 1: 

1 Introduction To Futures Trading By

What is Futures? : 

2 What is Futures? A futures contract is an agreement between two parties to buy or sell the underlying What is Futures Contract ? A futures contract is a contract that either required physical delivery of the underlying product or be settled by cash. A cash-settled contract is a contract that required to be settled upon the contract expiration day. Deliverable contract is a contract which required the buyer to take delivery of the physical commodity and the seller to deliver. In most futures trading speculations, actual delivery seldom takes place as most traders usually close the contracts prior to the expiration dates. A trader who has bought a futures contract can close out by selling the same number and type of futures contract he bought and vice versa.

Why Trade Futures? : 

3 Why Trade Futures? Bull Market Strategy VS Bear Market Strategy Bull Market Strategy : Buy Low and Sell High During a bull market, a trader buys a futures contract which is also known as the long. Profit is made when the trader sells the contract later at a higher price. Bear Market Strategy: Sell High and Buy Low During a bear market, a trader sells a future contract which is also know as the short. Profit is made when the trader buys the contract later at a lower price.

Slide 4: 

4 Why Trade Futures? Leverage Margin Trading- is common way of utilizing concept of leverage in investment, as attempt to increase the return of investment. Information you should know Initial Margin/ Maintenance Margin - is the minimum margin to start trading and/or margin to maintain the position. Margin Call - If margin balance fall below margin requirement will triggered a Margin Call, in order for trader to maintain the position, trader has to deposit margin to fulfill Maintenance Margin.

Bullish Strategy : 

5 Bullish Strategy BUY FIRST and SELL LATER Example of a Profit Making Long Contract 13 April Buy 1 FKLI April at 920 pts 14 April Sell 1 FKLI April at 935 pts Points Gain 935 pts – 920 pts = 15 pts Gross Profit 15 pts x RM50 = RM750 Commission Open and Closed = RM 50 Net Profit RM750 – RM50 = RM700

Slide 6: 

6 Bearish Strategy SELL FIRST and BUY LATER Example of a Profit Making Short Contract 16 April Sell 1 FKLI April at 970 pts 17 April Buy 1 FKLI April at 960 pts Points Gain 970 pts – 960 pts = 10 pts Gross Profit 10 pts x RM50 = RM 500 Commission Open and Closed = RM 50 Net Profit RM750 – RM50 = RM 450

Type of Order : 

7 Type of Order Limit Order is an order which has a price limit and specified quantity at the time of entry. Market Order is an order shall be executed at the best available market price and as quickly as possible. Stop Loss Order A Stop Loss order is a buy or sell order with a trigger price. When the trigger price is reached, the Stop Loss order becomes Market order. Stop order purpose is to protect profit or limit loss. Stop Limit Order A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price. Day Order Orders specified with day validity are orders that are deemed good for that day only. Good-Till-Cancelled (GTC) Order A Good-Till-Cancel order remains valid until it is executed, cancelled, or until the contract month expires.

Our Website : 

8 Our Website Samples of a Futures Trading Screenshots Please note the screens differ from Company to Company

iTrade to English Futures Price Feed : 

9 iTrade to English Futures Price Feed

Futures Prices Viewing (FKLI) : 

10 Futures Prices Viewing (FKLI)

CPO Prices Viewing : 

11 CPO Prices Viewing

Charting for FKLI : 

12 Charting for FKLI

Technical Chart for FKLI : 

13 Technical Chart for FKLI

Slide 14: 

14 Thank you Get free tips at

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