This course has, to this point, briefly outlined preliminary concepts and applications of futures trading.Naturally, as a vehicle for speculating, hedging, or spreading risk, futures trading has significant importance. As a vehicle for stabilizing costs to producers and end-users, futures trading is a vital tool.On a more pervasive level, however, an understanding of futures trading can prove very valuable to the
investor not interested in actually trading futures.
This course gives considerable attention to the hypothesis that a knowledge of futures price trends and
futures market behavior can assist one in understanding economic trends as well as in forecasting the
short-term to intermediate-term direction of prices. There may also be long-range implications for
investors.
Conclusions
· Futures trading is a technique whereby one can buy and/or sell a variety of raw
and processed commodity items, including financial instruments and stock
indices, for anticipated delivery at some point in the future.
· There are three major categories of participants in the futures markets, each
with their own expectations, goals and market methods.
· Futures trading allows producers and end-users to lock in costs of production,
improving economic stability as well as the stability of their particular business.
· Speculators, by far the largest category of traders, have no interest in making or
taking delivery. Rather, their interest is in playing market swings for dollar
profits.
· There are many common objections to futures trading. Some have merit, others
are not well-founded.
· There are specific methods, systems and procedures used in futures trading
designed to reduce its inherent risk, a majority of which have been time-tested.
· Futures trading involves considerable risk. However, this risk can be greatly
reduced by consistent application of various principles.
· Futures trading can be an excellent vehicle for immense profit, or it can be a
dangerous tool for financial ruin. Those who win often attribute their success to
an attitude, which reflects self-discipline, courage, consistency, persistence,
specific trading techniques and a willingness to learn from mistakes.
investor not interested in actually trading futures.
This course gives considerable attention to the hypothesis that a knowledge of futures price trends and
futures market behavior can assist one in understanding economic trends as well as in forecasting the
short-term to intermediate-term direction of prices. There may also be long-range implications for
investors.
Conclusions
· Futures trading is a technique whereby one can buy and/or sell a variety of raw
and processed commodity items, including financial instruments and stock
indices, for anticipated delivery at some point in the future.
· There are three major categories of participants in the futures markets, each
with their own expectations, goals and market methods.
· Futures trading allows producers and end-users to lock in costs of production,
improving economic stability as well as the stability of their particular business.
· Speculators, by far the largest category of traders, have no interest in making or
taking delivery. Rather, their interest is in playing market swings for dollar
profits.
· There are many common objections to futures trading. Some have merit, others
are not well-founded.
· There are specific methods, systems and procedures used in futures trading
designed to reduce its inherent risk, a majority of which have been time-tested.
· Futures trading involves considerable risk. However, this risk can be greatly
reduced by consistent application of various principles.
· Futures trading can be an excellent vehicle for immense profit, or it can be a
dangerous tool for financial ruin. Those who win often attribute their success to
an attitude, which reflects self-discipline, courage, consistency, persistence,
specific trading techniques and a willingness to learn from mistakes.