Having looked at how to trade in dow jones futures, let’s look briefly at some of the other futures markets that lend themselves to this kind of analysis, and as many of you will already know, I am a full time commodities and currency trader, specialising in markets such as oil, silver, gold and of course currency futures. The principles of course for futures trading remain the same, and whether you are trading dow jones futures, oil futures, currency futures or silver futures, the principles of margin and centralised exchanges still apply.
The alternative of course, which is now growing in popularity is to trade commodities and currencies using some of the new OTC or over the counter instruments, with many forex brokers now offering commodities, along with spread betting companies and a new form of financial betting calling binary options. Whilst all of these methods give you quick and simple access to the markets, and avoid some of the more complex issues of futures trading, all of these ‘OTC’ contracts have two things in common. Firstly, the contracts are specific to the broker – this is what an OTC contract is – it is not a standard contract which can be traded through an exchange, but can only be bought and sold through the broker who originally created the market, and from whom you bought the instrument. Secondly, you will almost certainly be trading against the broker, and as such he can see your position along with any stop losses, and if you broker happens to be classified as a market maker broker, then you can be fairly sure that your stops will be taken out at some point, along with price manipulation of your feed. This practice is particularly common in the forex market at present with an increasing number of brokers operating in an unregulated market. Whilst the futures market may be complex, it is both fair and regulated, something which the OTC market never is I’m afraid, which is why I only trade futures for commodities and currency.
So let me cover some of the basics of commodities futures starting with oil futures.
Michael Page and Premier Oil targeted on director pay
18 May 2012 at 5:20pm
The shareholder spring stepped up a gear on Friday as investors failed to back pay at recruitment group Michael Page and explorer Premier Oil.
Questor share tip: Lamprell a hold after shock profit warning
17 May 2012 at 6:00am
Lamprell shares plunged by almost two thirds yesterday after it issued a significant profit warning. Management credibility has been severely hit.
Shareholder Spring: investor revolts at Tullow Oil and 888
16 May 2012 at 8:53pm
A trio of companies including oil explorer Tullow Oil have become the latest victims of the Shareholder Spring.
SSE cuts bonuses over mis-selling, as derivatives hit profits
16 May 2012 at 7:44pm
Energy supplier SSE saw annual pre-tax profits dive 87pc, from £2.1bn to £268.5m, after being hit by derivative losses and costs relating to halting doorstep sales after it...
Regulator to probe Lamprell over share dealing ahead of profit warning
16 May 2012 at 4:07pm
The City regulator is to ask Lamprell to explain how senior managers sold £1.7m worth of shares just weeks before it issued a profit warning.
Total finally plugs Elgin gas well in North Sea
16 May 2012 at 12:34pm
North Sea platform had been leaking gas for more than seven weeks.
Renewable energy boosts SSE profits
16 May 2012 at 7:08am
SSE, one of Britain's biggest energy suppliers, has reported a 2pc rise in full-year profits as growth at its production and generation unit offsets a drop in customer numb...
Lamprell shares slump by two thirds after profit warning
16 May 2012 at 6:00am
Shares in Lamprell, which refurbishes and manufactures specialist oil rigs, collapsed by 65pc after the company warned it would make a first-half loss.
New UK nuclear plants threatened by EU state aid rules
15 May 2012 at 6:17pm
A new generation of UK nuclear plants is in jeopardy because of EU regulations that are inflating costs and may deter investment, MPs and energy suppliers warned.
Countries with the lowest petrol prices: in pictures
15 May 2012 at 1:06pm
The Chancellor will need to plug a £13bn black hole in tax revenue by 2029 as efficient hybrid and electric cars gain in popularity and cause a slump in fuel duty receipts....
