can we short sell commodities.whether there are lots.what is square up.what is margin moneyis it similar in an?
Thursday, May 1, 2014
, Posted by Ryanita at 9:57 AM
sanpit
is it similar in any way to futures.what is forex how is it traded any details
Answer
Commodities, futures, and Forex are all very similar. I've traded all three. In the end, I decided to go with the FOREX, and I stopped trading commodities and futures for the most part. The reason is this: with the Forex, the market is open 24 hours a day. So you can trade all day, and all night, and no need to worry so much about your trades still being open when the market "closes" each day. Secondly, the FOREX is a massively larger market than futures and commodities, which means your orders get filled faster, so there is less slippage. This happens because, each time you try to short sell, someone else has to be buying, for your order to get filled. And if you try to buy, someone else has to be selling, for your order to get filled. In smaller markets, this can cause a few moments of delay, while you wait for your order to get filled, and during that delay, you can lose money. But in the Forex, there is pretty much never any delay whatsoever, because the market is SO huge, there is always sellers and buyers. And finally, with the Forex, there is no "limit" to how much the market can move each day. With the futures and commodities, if the market moves up or down a large amount in one day, it "tops out" or "bottoms out" and the market will NOT move down anymore that day. And if you happened to have put in a buy trade, and it goes down and bottoms out, you then try to "sell" to get out of it, and guess what? You can't sell! Because the market bottomed out! Nobody can sell! Not that day, anyway. You have to wait till tomorrow to try to get out. And sometimes, it opens the next day, already bottomed out again the instant it opens, and you still can't get out. And you end up bottoming out several days in a row, all the while, you can't exit your buy trade because the market keeps bottoming out. So you lose all your money, and nothing you can do about it. But with the Forex, the market doesn't bottom out or top out. You can always exit your trades, anywhere, anytime. Much safer. Also, with the Forex, much more volitile, and higher leverage.
Anyway, if you are looking for a good Forex strategy, there is a new service where you can browse through and sort through an index of thousands of Forex strategies. I highly recommend it. As a 10 year Forex trader, I've found that the strategies on this website are better than many of my own, and so I've almost totally switched to using them. I'll post the link below in my references. I hope this information was helpful to you!
Commodities, futures, and Forex are all very similar. I've traded all three. In the end, I decided to go with the FOREX, and I stopped trading commodities and futures for the most part. The reason is this: with the Forex, the market is open 24 hours a day. So you can trade all day, and all night, and no need to worry so much about your trades still being open when the market "closes" each day. Secondly, the FOREX is a massively larger market than futures and commodities, which means your orders get filled faster, so there is less slippage. This happens because, each time you try to short sell, someone else has to be buying, for your order to get filled. And if you try to buy, someone else has to be selling, for your order to get filled. In smaller markets, this can cause a few moments of delay, while you wait for your order to get filled, and during that delay, you can lose money. But in the Forex, there is pretty much never any delay whatsoever, because the market is SO huge, there is always sellers and buyers. And finally, with the Forex, there is no "limit" to how much the market can move each day. With the futures and commodities, if the market moves up or down a large amount in one day, it "tops out" or "bottoms out" and the market will NOT move down anymore that day. And if you happened to have put in a buy trade, and it goes down and bottoms out, you then try to "sell" to get out of it, and guess what? You can't sell! Because the market bottomed out! Nobody can sell! Not that day, anyway. You have to wait till tomorrow to try to get out. And sometimes, it opens the next day, already bottomed out again the instant it opens, and you still can't get out. And you end up bottoming out several days in a row, all the while, you can't exit your buy trade because the market keeps bottoming out. So you lose all your money, and nothing you can do about it. But with the Forex, the market doesn't bottom out or top out. You can always exit your trades, anywhere, anytime. Much safer. Also, with the Forex, much more volitile, and higher leverage.
Anyway, if you are looking for a good Forex strategy, there is a new service where you can browse through and sort through an index of thousands of Forex strategies. I highly recommend it. As a 10 year Forex trader, I've found that the strategies on this website are better than many of my own, and so I've almost totally switched to using them. I'll post the link below in my references. I hope this information was helpful to you!
What are lots in Forex?
Q. I have recently been researching Forex sector and have found the term "lots" coming up again and again but don't know what this refers to. Does anyone know?
Answer
A lot represents the standardized quantity of a financial instrument as set by an exchange or a similar regulatory body.
The standard lot in Forex represents 100,000 units of the base currency.
Because currencies are traded in pairs (i.e. EUR/USD) the lot represents the volume of the base currency.
As such, for 1 standard lot of EUR/USD you are basically trading 100,000 EURs
References:
http://www.investopedia.com/terms/s/standard-lot.asp
http://www.xglobalmarkets.com/lots-trading-and-pips-calculation/
A lot represents the standardized quantity of a financial instrument as set by an exchange or a similar regulatory body.
The standard lot in Forex represents 100,000 units of the base currency.
Because currencies are traded in pairs (i.e. EUR/USD) the lot represents the volume of the base currency.
As such, for 1 standard lot of EUR/USD you are basically trading 100,000 EURs
References:
http://www.investopedia.com/terms/s/standard-lot.asp
http://www.xglobalmarkets.com/lots-trading-and-pips-calculation/
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