Trading Futures

It is important for you to know the difference between trading futures and trading stocks before we share insights on futures. You share ownership with other investors and you own a part of company whenever you buy a stock. And with respect to Trading Futures, the selling and buying of commodity in the future always requires a contract. You just need to tie up resources in the form of margin and thus futures trading is as easy as trading stocks. Advantages of trading futures are as follows:

1)      Trading Long and Short –Once you decide direction you think the market is headed then it does not matter whether you are going short or long with futures.

2)      No Day Trading Limits –After IRS considers you a day trader, stocks can be traded only three times a day. The buying, selling of futures can be done any number of times in a day and quick profits as well as benefits can be taken from intraday swings.

3)      No Wash Sales Penalties –There is no penalties from IRS if you take a loss and reenter the same trade within a month. Futures pricing are recorded market to market and thus it is not penalized for futures.

4)      24 Hours Trading –Except on weekends, trading in futures is nearly around the clock.

5)      European Style Trading –Stock options follow American style while most futures options trade European style.

6)      Tax Advantage –Options on futures are treated according to IRS section 1256. There is always a tax advantage as 60% of all gains are considered long term.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group.We provide expertise in broking services, merchant banking, non-banking financial dealings, jewellery manufacturing, realty &infrastructure. It is a comprehensive financial services & solution provider,which aims to provide an end-to-end financial solution to its clients.

Investing in Commodity and Stock Markets

Who said that stock market is not meant for small players?The small time investors include students, homemakers, small time businessmen and more. Success aspect is important whether you are investing big or small. Indian stocks investment yield you good returns if you play safe. Following are some tips which will help you to get good returns from commodity & stock markets:

1)      Stay updated with online news portal and flow of Indian market.

2)      The market tips of any online platform must not be followed blindly and you should not be influenced by rumors.

3)      Market investments relate to either gaining or losing. Whenever you deal in commodity or stock markets, do control your emotions.

4)      Use fundamental analysis and stock technical analysis to select potential Indian stocks. You will always be profitable if you do proper research and make use of investing tools.

5)      Always analyze everything related to Indian market so that you do not miss on anything.

The order of the day in recent times is having a diversified investment portfolio. In this way, the investors observe their money multiply faster than they have expected. Commodity and stock markets are two investment options that are worth mentioning. With respect to commodity market, you can trade in oil seeds, metals, food grains, cash crops, spices and more.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in BrokingServices, Merchant Banking, Non-Banking Financial Dealings, Jewellery manufacturing and Realty and Infrastructure. It is a comprehensive Financial Services and Solution Provider,which aims to provide an end-to-end financial solution to its clients.

Introduction to Futures and Commodity Trading

It is always for good reason whenever commodities have been traded since ancient times. Commodity trading is in fact older than the stock market. Commodities have always held their value and never affected by inflation. A continuous auction market where users buy or sell individual commodities, currencies and financial instruments at a specified price is termed as “futures market”.

Commodity Trading Advantages: Commodity traders have the ability to leverage their money. Commodities have material value and would not go bankrupt.

Futures Contract: You buy shares while investing in stock market. A contract is the smallest unit that can be traded in futures market. A contract specifies the time, date and place for a future delivery of certain commodity or good.

Speculators: Their mission is to make profit from changes in price and not to take or make a delivery of a commodity.

Buying: Whenever the commodity price go up, the investors buy or go long. In this case, their contract specifies a lower price of commodity than the current price and thus they make profits.

Selling: Investors sell or go short when they expect the price of commodity to decline. Buying a contract at the low price is realization of profit.

Trading commodities are very risky but can be highly profitable. Thus traders need to be careful otherwise they can be easily wiped out. Visit www.abans.co.in to know more about commodity trading.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in Broking Services, Merchant Banking, Non-Banking Financial Dealings, Jewellery manufacturing and Realty and Infrastructure. It is a comprehensive Financial Services and Solution Provider,which aims to provide an end-to-end financial solution to its clients.

Commodity Trading - Overview

Commodities are related to food, energy or metals and are important part of everyday life. High crude oil prices impact anyone who drives a car while drought on the soybean supply impacts people who eat. Commodities traditionally move in opposition to stocks. Investing in commodities require time, money, expertise and thus average investor do not take part in commodity trading. Some of the routes to commodity market are so easy that even a non-professional trader can participate.

Dealing in commodities is far older than dealing in stocks and bonds. Commodity trading is an essential business and agreed-upon standards are required in exchanges with respect to commodity trading so that trades can be executed. Commodity markets work on basic economic principles of supply and demand. Significant manufacturing players like India and China has contributed to declining availability of industrial metals such as steel for the rest of the world.

Tradeable commodities fall in four categories:

a)      Metals – Gold, Silver, Platinum and Copper

b)      Energy – Crude Oil, Heating Oil, Gasoline and Natural Gas

c)       Livestock and Meat – Live Cattle, Feeder Cattle, Pork Bellies

d)      Agricultural –Corn, Soybeans, Wheat, Rice, Coffee, Cotton and Sugar

Futures Contract is a popular way to invest in commodities and it is an agreement to buy or sell in the future, a specific quantity of commodity at a specific price. Two types of investors participate in the futures market: speculators and institutional or commercial users of commodities. You will have to open up a new brokerage account for investing in a commodity futures contract.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in Broking Services, Merchant Banking, Non-Banking Financial Dealings, Jewellery manufacturing and Realty and Infrastructure. It is a comprehensive Financial Services and Solution Provider,which aims to provide an end-to-end financial solution to its clients.

Commodity Trading – Golden Rules

Trading business is growing in India, commodity trading is volatile and hence money making market. It is true that there is a high risk involved in a commodity market place and we suggest you never trade if you are a beginner or do not have knowledge about commodity trading. Commodity is volatile market, its prices vary every time and one can earn profit by predicting commodity prices. But it is not an easy task for everyone to predict and analyze.

There are plenty of companies that provide commodity tips on the basis of market prediction. Traders earn profits by following these tips. Some companies provide direct calls to clients and thus we suggest you to check their services and then hire the best one. Some Golden Rules that one should follow while trading in commodity market:

1)      Do not trade with hesitation or over confidently.

2)      Investing in single commodity is not recommended. Thus invest small amount in different commodities so that you will not get disappointed when the price of one commodity falls.

3)      You should not overtrade because you may face huge losses.

4)      Never ignore trends while trading in commodity market.

5)      Read everything about commodity market as this differs from stock market.

6)      Start with a demo account if you are a beginner.

7)      Exit immediately if market condition is critical.

8)      Lot of experts will create confusion in mind and thus we suggest you to follow only one analyst or expert.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in Broking Services, Merchant Banking, Non-Banking Financial Dealings, Jewellery manufacturing and Realty and Infrastructure. It is a comprehensive Financial Services and Solution Provider,which aims to provide an end-to-end financial solution to its clients.