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| Frequently Asked Questions |
Question 1 : What's the difference between stocks and futures ?
'Trading stocks' involves bringing people with extra capital together with those who need capital to develop a business. They facilitate the
transfer of ownership of the corporations. Property rights change hands.
'Trading futures' brings people together to transfer the price risk associated with the ownership of some commodity, like wheat, or a service,
like an interest rate. No property rights to a physical commodity change hands at the time the futures contract is entered into. In many ways, this
makes trading futures vs. stocks much simpler in terms of taxes, execution, short selling and analysis.
Question 2 : What are Futures and Why Trading Futures ?
Answer : Part 1 : click here -- Part 2 : click here -- Part 3 : click here -- Part 4 : click here
Question 3 : What is the difference between options and futures ?
Options give the buyer the right, but not the obligation, to buy or sell a specific product for a preset price during a specified time period.
Futures are obligations to buy or sell a specific product on a specific day for a preset price.
Question 4 : How can I sell a futures contract before I own it ?
It is just as easy to sell first and then buy back later because a futures contract is an agreement to make the stated exchange at some time in
the future. Selling first is referred to as shorting or selling short. To offset your obligation to deliver, all you need to do is buy back your
contract(s) prior to expiration.
Question 5 : How do I determine how much capital I need to trade a particular contract ?
You can have a profitable trading experience starting with as little as $10,000. To calculate the number of contracts you can trade
with 10.000 USD : click here
Question 6 : What means margin and leverage ?
Margin is the equivalent of a 'good faith' deposit. It's a small percentage, usually between 2% and 10%, of the value of the contract that is
deposited with a broker. Margin deposits are set by the exchange and are subject to change with price movement and market volatility.
Leverage is the ability to use a small amount of money to make an investment of greater value so that small price changes can result in huge
profits or losses.
To know more about margin/leverage : click here
Question 7 : What's the difference between the roles of speculators and hedgers ?
Hedgers are interested in the products of the futures contracts. They can be producers, like farmers, mining companies and oil drillers. Or they
can be users, like bankers, paper mills and oil distributors. In general, producers sell futures contracts while users buy them.
Speculators trade futures strictly to make money. Typically, speculators trade futures contracts, but never use the commodity itself.
Speculators may either buy or sell contracts depending on which way they think the market is going in a particular commodity.
Question 8 : What tools do I need to trade ?
Before traders can decide what tools to use to trade, they need to decide on their approach to trading. How much money are you willing to risk ?
How frequently do you want to trade ? How much time are you willing to invest in the trading process ? Which broker you should use ?
These are just some of the questions that should be answered before deciding on what tools to use. The tools needed to trade vary from
person to person. DayTrader-Generation has his own approach to trading and uses tools tailored to their approach. Some people may use
thousands of dollars worth of software, while others rely on pictured charts. Still others only use a fundamental or technical approach.
Question 9 : What's the difference between fundamental and technical analysis ?
Fundamental analysis is concerned with changes in supply and demand factors, which influence the price of the future being traded. Technical
analysis focuses on patterns in the movement of price itself, as well as other market specific data such as volume and open interest.
'Trading stocks' involves bringing people with extra capital together with those who need capital to develop a business. They facilitate the
transfer of ownership of the corporations. Property rights change hands.
'Trading futures' brings people together to transfer the price risk associated with the ownership of some commodity, like wheat, or a service,
like an interest rate. No property rights to a physical commodity change hands at the time the futures contract is entered into. In many ways, this
makes trading futures vs. stocks much simpler in terms of taxes, execution, short selling and analysis.
Question 2 : What are Futures and Why Trading Futures ?
Answer : Part 1 : click here -- Part 2 : click here -- Part 3 : click here -- Part 4 : click here
Question 3 : What is the difference between options and futures ?
Options give the buyer the right, but not the obligation, to buy or sell a specific product for a preset price during a specified time period.
Futures are obligations to buy or sell a specific product on a specific day for a preset price.
Question 4 : How can I sell a futures contract before I own it ?
It is just as easy to sell first and then buy back later because a futures contract is an agreement to make the stated exchange at some time in
the future. Selling first is referred to as shorting or selling short. To offset your obligation to deliver, all you need to do is buy back your
contract(s) prior to expiration.
Question 5 : How do I determine how much capital I need to trade a particular contract ?
You can have a profitable trading experience starting with as little as $10,000. To calculate the number of contracts you can trade
with 10.000 USD : click here
Question 6 : What means margin and leverage ?
Margin is the equivalent of a 'good faith' deposit. It's a small percentage, usually between 2% and 10%, of the value of the contract that is
deposited with a broker. Margin deposits are set by the exchange and are subject to change with price movement and market volatility.
Leverage is the ability to use a small amount of money to make an investment of greater value so that small price changes can result in huge
profits or losses.
To know more about margin/leverage : click here
Question 7 : What's the difference between the roles of speculators and hedgers ?
Hedgers are interested in the products of the futures contracts. They can be producers, like farmers, mining companies and oil drillers. Or they
can be users, like bankers, paper mills and oil distributors. In general, producers sell futures contracts while users buy them.
Speculators trade futures strictly to make money. Typically, speculators trade futures contracts, but never use the commodity itself.
Speculators may either buy or sell contracts depending on which way they think the market is going in a particular commodity.
Question 8 : What tools do I need to trade ?
Before traders can decide what tools to use to trade, they need to decide on their approach to trading. How much money are you willing to risk ?
How frequently do you want to trade ? How much time are you willing to invest in the trading process ? Which broker you should use ?
These are just some of the questions that should be answered before deciding on what tools to use. The tools needed to trade vary from
person to person. DayTrader-Generation has his own approach to trading and uses tools tailored to their approach. Some people may use
thousands of dollars worth of software, while others rely on pictured charts. Still others only use a fundamental or technical approach.
Question 9 : What's the difference between fundamental and technical analysis ?
Fundamental analysis is concerned with changes in supply and demand factors, which influence the price of the future being traded. Technical
analysis focuses on patterns in the movement of price itself, as well as other market specific data such as volume and open interest.
| Trader : Herman Bogaerts -- Tradersname : Freedom --- Portable : 0033.(0).683.13.99.99 -- E-Mail : Admin@Daytrader-Generation.com |
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| Daytrader-Generation “No Gambling but True Working Tools to Achieve Profit” "Day-Trading, Business of the Future !" |