Simply because we have buyers and sellers, nothing else. Any market has buyers and sellers, the futures markets are no exception and KNOWING supply and demand, is what makes money.
People fear futures trading and trading futures online even more. They think that online futures trading is more dangerous or riskier than any other online stock trading strategies.
No my dear friend...
Online futures trading is less Risky because you spend less time in the
markets and leverage is used in your favor, not against you.
Surprises like, bad news, terrorist attacks or another
world disaster can be monitored by you closely, so that
you hold your position open from 15 minutes to 3 hours,
(or even less) at a maximum, and go home.
Online stock trading makes you wait several days to show a profit (which increases your risk). Normally I trade both stocks and futures, the only difference is the holding period. You may hold 500 Apple stocks for 5 days, while you may hold 3 futures contracts of Corn for 5 minutes when futures trading online, That’s the difference.
Do not think that futures trading online means that you must have to keep your eyes glued to the 30 components (stocks) of the Dow Futures.
Futures Trading move by Supply and Demand in an Auction Process.
What it means is that Price looks for an area of balance once it is Unbalance, or vice-versa, just like when somebody lower the price of bread in the supermarket, everyone buys more because they feel they can. Simple !
So, what does online futures trading mean?
Buy or sell whatever contract you like when it reaches an area or price where you can do business, that’s all…
Not watching the 500 components of the S&P 500, or the weather to see if the corn market is affected today…Futures Trading simply means Looking for areas (prices) where Supply and Demand is located and place your orders to buy or sell. Simplicity is king.
If you are a complete beginner and do not know what a futures contract is, then.
Now If you already know what a futures contract is, what is it for, main markets, etc. but do not know how to trade them then...
If you follow those 5 points, Online Futures Trading will be more simple, you will have a plan and an edge to pull money out of the futures markets.
I really hope I can help you with this plan to achieve that Goal!.
But remember, Respect the market and understand its mechanisms. Online Futures Trading cannot make you rich overnight, but It can surely help you make some money and save you from a financial disaster. They can even help you plan for a better personal finance budget, if you do it correctly.