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Our mission is to provide a Free Trading System to all commodity futures traders who are members of our FreeTradingSystem Club. By becoming a paid club member you will receive a Membership Certificate to The Free Trading System Club (coming soon). By using your monthly fee club membership number you will be sent your free trading system supplied online or via postal mail on a CD. Trade the markets using your free-trading-system for as long as desired or as long as it's profitable for you.
If you later want to try a different trading system simply login to your club membership area, enter your unique club membership number and one more free trading system will be sent to you. There is no limit to how many times you can do this (beyond the number of trading systems we have available at any given time). As you wait for the FreeTradingSystem.com website development we recommend you come back again soon. We will be offering club memberships to our new free trading system club so please visit again. Click now for Trading Tip of the Day.
FREE Commodity Futures Trading Advice & Tips
Commodity futures trading refer to trading of futures agreements. These agreements are deals made to trade the primary commodities at fixed rates in the future. The rates are usually based on the existing or prevailing day rate. Similar to stock trading, commodity futures are traded in particular centralized trading markets like Globex and S&P.
Today, there is a massive increase in the number of commodity traders trading futures agreements because of many reasons. Among these reasons include the following:
- simplicity of trading that enables anyone to do trading online or virtually,
- the present of high liquidity in the market due to huge trade volumes made daily,
- the stability of the market,
- easiness to own an underlying commodity wherein one can buy a high-priced product at a lower price during time of agreement,
- low rates of commission in comparison to trading underlying futures stocks,
- the ability to do trading at home with decreased in working capital,
- lower initial investment required,
- the availability of small futures that have narrow spreads and less account minimums,
- the presence of various underlying products in the market
Any person can be successful in gaining trader profits through commodity futures trading. At the futures markets, the speculators and the hedgers meet to predict whether the price of a commodity will rise or fall in the future based on a particular market or currency index. Just like any market, commodity futures trading can be risky, however the potential to see both long and short term gains can be considerable.
There are different futures markets as well as strategies that a person can use to gain trader profits from commodity futures trading. Primarily, a commodity refers to the physical product whose value is decided by the forces of demand and supply. These forces include precious metals, energy, grains, and more. The commodities are traded in a centralized market at a predetermined time whether its price will rise or fall. In trading commodities, it would be strategic to use straddles. A straddle is created holding the same number of puts and calls with the same expiration date and strike price. The “calls” is where the trader expects that the price will rise while the “puts” is where the trader speculates that the prices will fall.
One more strategy in gaining trading profits from commodity futures trading is called 'scalping' - Just like commodities, the prices of trade currencies in scalping are speculated to rise or fall. In the value of currency, the scalpers try to take short-term profits off the incremental modifications. As this is done repetitively, the profits will continue to grow in time resulting to significant total profits as all small profits are combined. In able to continue gaining trader profits, one must require strict discipline in order to continue making short-term and small profits while preventing large losses.
In the commodity futures markets, there are two main types of futures trading agreements available. The first type is called as commodity futures and requires physical delivery. The futures in this type include agricultural commodities. The second type is called as financial futures, which often require cash settlement. This type involves mutual funds, bonds, treasury notes, and the like.
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FREE Advice and Tips on Profitable Commodity Options Trading
Trade commodity options are highly profitable. It can be more wonderful and great than stocks options because it brings risk management to an entirely new level and gives plenty of flexibility as well. Compared to index or stock options, strategies for trade commodity options can be exchanged with lesser margin. These options can also be used for both speculative and income purposes. Moreover, the margin rules of SPAN allow usage of less capital for trade commodity options. Nowadays, the commodity option trading are made substantial for complicated options strategies with the help of brokers who use deep discount commissions, online trading platforms, electronic trading platforms, and electronic mini contracts.
Commodity options are just like with stock options when it comes to trading transaction. The only difference between these two is multiples of option premiums that each represents. Apparently, there are different advantages gained from commodity options that include low margins & high yields, lower commissions, low slippage, better hedging, no additional margin trades, call credit spread, and additional trades.
Most of the trading commodity options use the SPAN margin rules wherein the calculation is centered on all angles of a selection. This can be very advantageous to the traders. For instance, a trade that uses collar strategy will have lower margin compared to the same trade that uses indices or stocks directly. Lower margins will result to better utilization of capital as well as with higher profits.
With trade commodity options, the slippage per deal per trade is huge. However, in most cases, a trade option that involves the same currency size will result to low slippage. The slippage is even lesser with commodity options that are electronically traded like e-mini contracts and gold options. Most of the strategies with trade commodity options need some few adjustments or hedging during the span of a trade. The general rule for hedging or adjustment is going short or long of the principal to watch over if the principal is not in favor of the trade. E-mini contracts and futures provide the best method to hedge or adjust with low capital requirement.
Trade commodity options do not have extra margin trades. With careful assessment of the current trades, possible extra trade opportunities may arise. These additional opportunities can decrease the overall margin that the trade requires.
Apart from the above mentioned advantages of trade commodity options, the trader must be aware that trading options as well as futures involve considerable risks of loss or gain that maybe or not suitable for all traders. Here is a useful list of tips that one can use for profitable options trades:
- Follow the trends in the commodity market as well as your natural instincts. As soon as you have chosen your trading system, stick to it.
- Do not overtrade and apply techniques of money management on your trading.
- Secure a position in the market wherein your profit goal exists.
- Avoid trading markets that has low capital and with volatile contracts.
- Establish trading plans prior to market opening. The plans must include objectives, exit points, and entry points.
- Maintain discipline by using technical signals such as charts. This will eliminate impulse trading.
- Cut losses short so profits can run.
- Do not overstay on a good market because there is a tendency to overstay on bad markets as well.
- Learn to trade from the short side and be patient.
- The broker and client must have rapport.
FREE Info on How to Trade CBOT Corn Futures for Profits
Throughout the history of mankind, corn had been considered very valuable because of the profits it brings. It is often referred as the other yellow gold. Apart from the profits that corn gives, it is also a great source of energy and food for man. Early Indians that migrated from the Eastern Asia were the ones who brought corn to America, in south specifically. During that time, Americans use corn plants as source for everything from making primitive beer to making clothes.
Next to wheat, corn is the second most cultivated plant in the entire history of mankind. Corn futures are one of the original grain future contracts. Its trading began during the 18th century in Chicago in America, the same time when cotton trading began. The role of corn market in the production of ethanol had increased its demand due to the high prices of petroleum products. According to experts, if the prices of crude oil stay high, ethanol is economically feasible to be added and produced to unleaded gasoline.
There are many uses for corn as well as various products made from corn people are not aware of. Among the products are cardboard, construction materials, adhesives, metal plating, lubricating agents, laminated building products, aspiring, and antibiotics. Because of these diverse applications and benefits, corn makes the corn options and corn futures market very important to the corn industry. Many knowledgeable farmers use corn options and corn futures markets to protect their crops against unfavorable price movements.
How many times in a day that an average American consumer uses a product made from corn? One can fill up his or her car up with ethanol combined with fuel. A soda during lunch time that is sweetened with a corn sweetener. Maybe you have a comforter or pillow made from corn fiber. There are the pot roasts for dinner that is fed with corned beef. Because of such benefits, the corn future contracts have been more popular because of their relative leverage and liquidity.
Since many of the commodities such as oats, soybeans, and wheat are being hit hard by the financial crisis of today, it would be a good opportunity to buy corn futures even if it is high in price. When we say corn futures, it refers to the exchange-traded and standardized contracts that a contract buyer agrees to take delivery from seller at a predetermined price, specific quantity of corn, and on a future delivery date. One can do corn futures trading at the Chicago Board of Trade or CBOT, Tokyo Grain Exchange or TGE, and NYSE Euronext. The prices of corn futures in CBOT are quoted in cents and dollars per bushel.
Producers and consumers of corn and grains can manage future price risks of grains and corn prices by buying and selling CBOT Corn futures and corn options. They can also use a short position to lock-in a future sale price for the corn being produced. Meanwhile, businesses that require corn can use long protection to secure the buying price for the commodity they require. The corn futures are also traded by speculators who assume that the price risks that protectors try to avoid in return for potential profits from substantial movement of corn prices. Many speculators buy corn futures when the prices are high and then sell futures if the futures prices are low.
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