Tuesday 30 April 2019

The Benefits of Futures Trading in Thailand Markets

What is Futures Trading?
 
Essentially a contract, futures is a derivative that allows the buyer and seller to buy/sell a particular commodity at some point in the future, whose price is fixed on the date of making the contract. Being a derivative, futures trading is incredibly advantageous in that traders need not own the underlying asset to profit from its growth.
 
Of the several trading markets available, futures see a lot of crowd. Along with the innate profitability, the added provision of leveraging allows traders to multiply their profits. 

Here are 4 reasons why futures trading in Thailand are one of the most beneficial trade markets: 

Futures Trading in Thailand
Futures Trading in Thailand

1) Leverage:
 
If you want to trade a stock valued at $10 with a futures contract, you need not to spend the complete $10 per share. Leveraging allows you to pay a margin amount and get access to high trading positions! One of the biggest advantages of futures trading is the ability to leverage positions, make big profits from them while only paying a portion of the necessary value.
 
2) Huge Profit Potential:
 
Though you only invest a margin amount, the profit potential remains unchanged. The futures trading markets have healthy liquidity percentages and done right, you can make stellar profits in your trades. When compared to markets like stocks or options, futures with its leveraged nature create a tremendous profit window.
 
3) Trade Both Ways:
 
It isn't just the uptrend’s that will move in your favor while futures trading, but even the downtrends! Futures trading markets allow you to trade both ways. Even on falling trends, so long as your strategy is adept, you can make amazing winnings. Other markets don't have this provision. Typically, a losing trend would indicate that your efforts will get washed up! 

But with futures, all you need do is be prepared with a trading strategy and any direction the market turns in, you will emerge victoriously.
 
4) Hedging:
 
An incredible way to balance out your losses and make sure you stay afloat is by hedging your losing trade. Hedging is the process of keeping a trade opposite to the one that's bringing in losses. This doesn't eliminate your losses but instead brings in enough profits to balance out the lost money. If you employ the right approach, you can even make marginal profits!
 
Futures trading in Thailand can be one of the best trading careers to undertake today. With the profitability scaling through the roof, the competition isn't going to be easy. Give yourself the edge over others! Sign up with WesternFX today and start making big profits! Our seasoned veterans will provide you with a best-in-class trading account to trade on and proven strategies to work with. Reach out to us now and try a Forex demo account today!

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