Trading
Equity Index Futures and Foreign Exchange under
a highly leveraged system introduces a large amount
of risk to the investor. It is well-accepted that
high risk goes hand in hand with high potential
return. This risk does however mean that it is
possible for an investor to lose their entire
holdings in their trading account in a worst case
scenario (although unlikely with the use of basic
risk management techniques, stop-losses and the
pace with which with the market would make such
a move). It is however important to comprehend
the degree of this risk, as this is the key to
one of the main advantages of Leveraged Futures
and Forex trading.
Each
dollar invested is working as hard as it possibly
can for you. Unlike the simple purchase of a share
that may see for example a 1-2% fluctuation in
price over a day and therefore leave the bulk
of the investment untouched, leveraged investments
focus all your capital on the "action-packed"
portion of the underlying investment. Rather than
hold a share worth say $10.00 with daily price
fluctuation of a few cents, leveraged investments
focus all your money in that last portion of the
investment where all of the price movement lies.
This means that all money invested is purely risk
capital, because every dollar is literally "at-risk".
By investing in Leveraged Futures and Forex and
employing a strong Trading System as offered here,
you may potentially increase your exposure to
significant gains on your capital in a very short
time. This also means you can lose a significant
amount of your money as well, however being educated
about your trading decisions and using sensible
risk-management techniques, you will improve the
likelihood of making profitable decisions and
trades. This Trading System can offer you that.
Advantages
of Equity Index Futures Trading
Maximum capital utilisation. As discussed, each
dollar in an investors account can be utilised
to offer the best potential return on a total
portfolio.
Strong
risk-management tools and procedures are allowed
with the use of comprehensive contingent and market
orders. This allows an investor to automate the
entry and exit of a trade as set on their trading
platform.
Direct
Market Access so that you can make your own trades
without a broker. This saves you time and expense.
Easy
to use Trading Platform that allows you to undertake
your trades effortlessly and efficiently.
Real
time positions reference with instant marked-to-market
updates and live price quotes.
Allows
you to trade on the most exciting market and ride
either long or short moves to your advantage and
potentially provide the best possible return in
a day. A market may open and close the trading
day at the same price and therefore achieve no
growth under simple buy and hold investment strategies.
Actively trading the market up through long positions
and down through short positions, with multiple
trades in a day, can allow you to make strong
returns on an otherwise profitless trading session.
Advantages
of Foreign Exchange Trading
The
Foreign Exchange is the largest financial market
in the world, with daily volume averaging US$1.4
trillion, compared to the US$50 billion stock
market. This volume gives the market an unprecedented
level of "liquidity" which is basically
the ease with which you can buy and sell. Having
such a large amount of "open-interest"
and transactions taking place allows an investor
to enter and exit the market literally in a split-second.
This improves the investors ability to achieve
accurate trade execution on price and volume.
The large volume can also potentially reduce the
volatility of the market, as a "deeper"
market tends to trend better with less price fluctuation.
This may equate to a less risky market.
Foreign
Exchange is also traded 24 hours per day, so the
investor is not limited to trading only during
the opening hours of the Stock Market, so you
can trade according to your time zone if required.
This is achieved through the market being firstly
carried by Sydney and Singapore, then Tokyo, London
and finally New York. There will however be particular
times during a day that the foreign exchange may
provide more beneficial movements due to the international
time zones and various economic and political
changes. The trading platform offered here closes
during the weekend and reopens on Sunday afternoon.
There
are no commissions or exchange fees with Foreign
Exchange, only the "spread" between
the bid and ask price.
Prices
and fills are firm and guaranteed due to the volume.
This increases the certainty associated with executing
trades.
As
with Futures, strong risk-management tools are
available with Forex carrying the added advantage
of Order Cancel Orders which can be set for specific
FX positions.
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