Education Futures & Forex - Commodities, Futures, Forex and Cash Metals Brokers (2024)

FAQs

What futures are most profitable? ›

What futures are most profitable? Trading in futures markets such as the Micro E-Mini Russell 2000 (M2K), Micro E-Mini S&P 500 (MES), Micro E-Mini Dow (MYM), and Micro E-Micro FX contracts can be highly profitable due to their distinct market characteristics.

A futures trader can potentially profit by correctly guessing the direction that the price of gold will move. But if the futures trader guesses wrong, he can lose his entire investment and more. Now that you know how a futures contract is used, let's look at five key components of a contract.

Poor risk management: Traders who do not properly manage their risk are more likely to suffer large losses. This is because they may not use stop losses or they may not take profits when they are available. Overtrading: Traders who overtrade are more likely to make mistakes.

Most traders have their hands full keeping abreast of a few markets. Remember that futures trading is hard work and requires a substantial investment of time and energy. Studying charts, reading market commentary, staying on top of the news—it can be a lot for even the most seasoned trader.

Probably the greatest single trade in history occurred in the early 1990s when George Soros shorted the British Pound, making over $1 billion on the trade. Most of the greatest trades in history are highly leveraged, currency exploitation trades.

This can be a risky form of trading, but it also has the potential to generate large profits. If you are starting with a small amount of capital, such as $10 to $100, it is still possible to make money on futures trading.

With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].

To apply for futures trading approval, your account must have: Margin approval (check your margin approval) An account minimum of $1,500 (required for margin accounts.) A minimum net liquidation value (NLV) of $25,000 to trade futures in an IRA.

On average, a forex trader can make anywhere between $500 to $2,000 per day. However, this figure can vary significantly depending on market conditions, trading strategy, and risk management techniques. Some traders may make more than $2,000 in a single day, while others may make less or even incur losses.

Can you make a living trading futures? ›

By focusing on a single market, you can get up to speed quicker. Trading futures for a living is a compelling idea — but to do it successfully, you'll need sufficient startup capital and a well-designed trading plan.

The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors.

Market Size and Liquidity: The Forex market boasts unmatched liquidity due to its massive size and round-the-clock trading availability. In contrast, futures markets are relatively smaller and more centralized, which can impact liquidity, especially in less actively traded contracts.

1:00 – 3:00 PM is the most liquid part of the afternoon as professional traders balance their books into the close, the last 20 minutes or so into 3:00 PM, the highest volume.

Crude oil leads the pack as the most liquid commodity futures market followed by corn and natural gas. Agricultural futures tend to generate the highest volume during periods of low stress in the energy pits, while gold futures have gone through boom and bust cycles that greatly impact open interest.

Conclusion. The most profitable form of trading varies based on individual preferences, risk tolerance, and market conditions. Day trading offers rapid profits but demands quick decision-making, while position trading requires patience for long-term gains.

Crude oil (CL) provides decent volume, but it also requires the most margin and is the most volatile.