http://profitabletradingtips.com/trading-investing/trading-forex-futures Trading Forex Futures A potentially profitable avenue for online futures trading is trading Forex futures. In general, Forex traders limit themselves to trading only major currencies. These are the US dollar (USD), Yen (YEN), Euro (EUR), British Pound (GBP), Swiss franc (CHF), Canadian dollar (CAD), and Australian dollar (AUD). One engages in trading Forex futures with the majors because these currencies trade in high volume, which makes technical signals more accurate and technical trading more profitable. There are two basic reasons for trading Forex futures. The first is to hedge currency risk in international trade. The other is to speculate on and ideally profit from volatility in the currency markets. Traders use both fundamental and technical analysis to predict price movement when trading Forex futures. Forex futures can be traded directly or one can engage in trading futures options in Forex to further hedge risk. Currency Selection Futures trading strategy in Forex depends upon why one is trading in the first place. A European company that purchases lithium batteries from a Japanese company will commonly need to pay in Yen. After the company signs a contract it can pay immediately or pay at the time of delivery. Because the price of Yen when purchased with Euros may rise significantly a company will often buy a futures contract to purchase Yen at a set price. This guarantees the company a set price for their purchase. However, a speculator is not tied to a specific currency pair and can scout the market for opportunity. Trading Forex futures in the USD/EUR pair may be attractive or trading AUD versus GBP may offer greater profit potential. A currency speculator will pick and choose his or her trades and profit to the degree that he or she correctly anticipates price movement. Trading Strategy In general, the various profitable day trading strategies that one employs in trading stocks, options, or futures other than Forex also work in trading Forex futures. Consider range trading, trend trading, scalping, trading the news, contrarian trading, and others. In each case a trader needs to know market fundamentals and understand when changes occur. Profits in trading Forex futures will commonly depend on the skill set of the trader no matter what strategy he or she uses...

1. TRADING FOREX
FUTURES
By
www.ProfitableTradingTips.com

2. A POTENTIALLY PROFITABLE
AVENUE FOR ONLINE FUTURES
TRADING IS TRADING FOREX
FUTURES.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

3. IN GENERAL, FOREX TRADERS
LIMIT THEMSELVES TO TRADING
ONLY MAJOR CURRENCIES.
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forex-futures

4. THESE ARE THE US DOLLAR
(USD), YEN (YEN), EURO
(EUR), BRITISH POUND
(GBP), SWISS FRANC
(CHF), CANADIAN DOLLAR
(CAD), AND AUSTRALIAN DOLLAR
(AUD).
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

5. ONE ENGAGES IN TRADING FOREX
FUTURES WITH THE MAJORS
BECAUSE THESE CURRENCIES
TRADE IN HIGH VOLUME, WHICH
MAKES TECHNICAL SIGNALS MORE
ACCURATE AND TECHNICAL
TRADING MORE PROFITABLE.
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forex-futures

6. THERE ARE TWO BASIC REASONS
FOR TRADING FOREX FUTURES.
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forex-futures

7. THE FIRST IS TO HEDGE CURRENCY
RISK IN INTERNATIONAL TRADE.
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forex-futures

8. THE OTHER IS TO SPECULATE ON
AND IDEALLY PROFIT FROM
VOLATILITY IN THE CURRENCY
MARKETS.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

9. TRADERS USE BOTH FUNDAMENTAL
AND TECHNICAL ANALYSIS TO
PREDICT PRICE MOVEMENT WHEN
TRADING FOREX FUTURES.
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forex-futures

10. FOREX FUTURES CAN BE TRADED
DIRECTLY OR ONE CAN ENGAGE IN
TRADING FUTURES OPTIONS IN
FOREX TO FURTHER HEDGE RISK.
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forex-futures

11. CURRENCY SELECTION
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forex-futures

12. FUTURES TRADING STRATEGY IN
FOREX DEPENDS UPON WHY ONE
IS TRADING IN THE FIRST PLACE
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forex-futures

13. A EUROPEAN COMPANY THAT
PURCHASES LITHIUM BATTERIES
FROM A JAPANESE COMPANY WILL
COMMONLY NEED TO PAY IN YEN.
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forex-futures

14. AFTER THE COMPANY SIGNS A
CONTRACT IT CAN PAY
IMMEDIATELY OR PAY AT THE TIME
OF DELIVERY.
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forex-futures

15. BECAUSE THE PRICE OF YEN WHEN
PURCHASED WITH EUROS MAY
RISE SIGNIFICANTLY A COMPANY
WILL OFTEN BUY A FUTURES
CONTRACT TO PURCHASE YEN AT A
SET PRICE.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

16. THIS GUARANTEES THE COMPANY A
SET PRICE FOR THEIR PURCHASE.
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forex-futures

17. HOWEVER, A SPECULATOR IS NOT
TIED TO A SPECIFIC CURRENCY
PAIR AND CAN SCOUT THE MARKET
FOR OPPORTUNITY.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

18. TRADING FOREX FUTURES IN THE
USD/EUR PAIR MAY BE ATTRACTIVE
OR TRADING AUD VERSUS GBP MAY
OFFER GREATER PROFIT
POTENTIAL.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

19. A CURRENCY SPECULATOR WILL
PICK AND CHOOSE HIS OR HER
TRADES AND PROFIT TO THE
DEGREE THAT HE OR SHE
CORRECTLY ANTICIPATES PRICE
MOVEMENT.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

20. TRADING STRATEGY
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

21. IN GENERAL, THE VARIOUS
PROFITABLE DAY TRADING
STRATEGIES THAT ONE EMPLOYS
IN TRADING STOCKS, OPTIONS, OR
FUTURES OTHER THAN FOREX
ALSO WORK IN TRADING FOREX
FUTURES.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

22. CONSIDER RANGE
TRADING, TREND
TRADING, SCALPING, TRADING THE
NEWS, CONTRARIAN TRADING, AND
OTHERS.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

23. IN EACH CASE A TRADER NEEDS TO
KNOW MARKET FUNDAMENTALS
AND UNDERSTAND WHEN CHANGES
OCCUR.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

24. PROFITS IN TRADING FOREX
FUTURES WILL COMMONLY DEPEND
ON THE SKILL SET OF THE TRADER
NO MATTER WHAT STRATEGY HE
OR SHE USES.
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forex-futures

25. OF COURSE, TRADING STRATEGY
ALSO VARIES WITH WHETHER ONE
IS TRADING TO REDUCE CURRENCY
RISK OR PURELY SEARCHING FOR
PROFITS IN MARKET VOLATILITY.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

26. TRADING PROFITS
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

27. TRADING PROFITS TRADING FOREX
FUTURES DEPEND UPON MAKING
MONEY ON TRADES AND KEEPING
COSTS DOWN.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

28. SMART TRADERS PICK GOOD
TRADING SITUATIONS.
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forex-futures

29. THEN THEY WAIT FOR THE RIGHT
CIRCUMSTANCES BEFORE
TRADING.
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forex-futures

30. TRADING PROFITS DO NOT
NECESSARILY DEPEND UPON
FREQUENT TRADES.
http://profitabletradingtips.com/trading-investing/trading-
forex-futures

31. TRADING PROFITS DEPEND UPON
MAKING ENOUGH MONEY ON EACH
TRADE TO PAY FOR FEES AND
COMMISSIONS AND TO GIVE A FAIR
RETURN FOR YOUR TIME AND
EFFORT.
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forex-futures

32. MANY SMART TRADERS APPROACH
TRADING AS A SMALL
BUSINESS, AND LOOK TO SEE
PROFITS COMPARABLE TO SUCH A
BUSINESS.
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forex-futures

33. IF THIS DOES NOT OCCUR THEY
RECALIBRATE AND TRY AGAIN.
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forex-futures