The following is a short extract from the course "How To Trade The Futures Market", please click here Trade Futures Course for full details on how to obtain the full text, futures trading simulator along with sample data and bonus trading ebooks package.

Find: Futures spread strategy firm trading trade day averages point contract.

Imagine you have developed a strategy that takes an average of 2 points (each point is worth 10) out of the FTSE futures every trade and it trades an average of 20 times a day. If you trade this approach with a futures broker, paying 8 a round turn you will clear 240 a day. If you trade this approach through a spread-betting firm with a 4-point spread, you will lose 400. If you are paying a 4-point spread every time you trade, you have to have a strategy that averages more than that. In fact for it to be more worthwhile trading with a spread-betting firm over a futures broker, assuming the above costs, you would need a strategy that averages a profit of about 10 points or more. This also 15 assumes that you can execute such a strategy with the same efficiency with the spread firm as you could in the real futures market, which is by no means a given. If you have developed a strategy that averages 10 points or more, then I would recommend paper trading in both the futures market and with a spread firm to see how the results differ. 16 Chapter 3: Practicalities Of Futures Trading Specification of the Futures Contract All futures contracts must specify the following details: The Unit of Trading/Contract Size gives a precise definition of the quantity (and quality) of the underlying asset. Delivery Months/Day. Certain months are designated for the contract to expire and a certain day in that month is designated for delivery.

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How To Trade The Futures Market

For full details about this detailed course, which includes a futures trading simulator software package complete with some sample trading data, and free trading ebook package please click here Futures Trading Course

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