Various types of Online Futures Traders
Online futures traders can be broadly divided into two large groups as Hedgers and Speculators according to the trading style they follow.
Hedgers are online futures traders trading for price certainty. They are simply like companies, who issues stocks to markets. They trade futures contracts of their products, either directly produced by them or possessed by them, in fear of loss at the actual selling time. Hedgers include both commodity futures traders – who trade agricultural or energy products or metals and financial futures traders - who trade currencies, stocks, bonds, treasury notes etc.
Speculators are the actual futures traders who buy and sell futures contracts for profits either by floor trading or electronic trading. They can be categorized to many groups like day traders, swing traders, position traders, arbitragers etc. Day traders trade actively according to small price changes with in a day while position traders trade with long-term trends. Arbitrages are traders who trade same futures contracts at different futures markets, with small changes in price rate. That is why arbitrages are mainly responsible for the price stability of futures contracts.
This information is provided by NobleTrading.com, a worldwide brokerage firm, offering direct access services for online stocks trading, options trading, futures trading, commodities trading and forex trading on a variety of trading software platform.
Hedgers are online futures traders trading for price certainty. They are simply like companies, who issues stocks to markets. They trade futures contracts of their products, either directly produced by them or possessed by them, in fear of loss at the actual selling time. Hedgers include both commodity futures traders – who trade agricultural or energy products or metals and financial futures traders - who trade currencies, stocks, bonds, treasury notes etc.
Speculators are the actual futures traders who buy and sell futures contracts for profits either by floor trading or electronic trading. They can be categorized to many groups like day traders, swing traders, position traders, arbitragers etc. Day traders trade actively according to small price changes with in a day while position traders trade with long-term trends. Arbitrages are traders who trade same futures contracts at different futures markets, with small changes in price rate. That is why arbitrages are mainly responsible for the price stability of futures contracts.
This information is provided by NobleTrading.com, a worldwide brokerage firm, offering direct access services for online stocks trading, options trading, futures trading, commodities trading and forex trading on a variety of trading software platform.
posted by NobleTrading at
2:06 AM
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