Online futures trading platform in the UAE
Due to the extremely high popularity and accessibility of trading for everyone interested in stock market operations, there is an urgent need to cover some issues. In particular, it makes sense to talk about derivative contracts or derivatives, which have existed for quite a long time, but are now available for trading to almost everyone. A successful trader is a trader who has not had a single losing year and who earns approximately 3-40% per year in his/her own account or in the account of a small investor. Nowadays you can find an impressive number of tutorials on the Internet, which help you to learn the basics of stock trading. It is worth realising that only continued practice with contingent and real money can bring a trader to an optimum level of profitability.
A futures contract is a contract to buy or sell an underlying asset at a predetermined time and at an agreed price that is fixed in the contract. Futures are approved on the basis of standard terms and conditions that are set by the exchange where they are traded. Imagine you want to buy a car in six months' time, but anything can happen to the price and you don't want to take a chance.
Then you go to the car dealer and enter into a contract, fixing the deal price by making an upfront payment. In essence, this is the point of a futures contract to fix the price of a good (service) and protect against its possible fluctuations in the future.
Futures contracts first appeared in the commodity market. Their essence is that the parties agree to defer payment for the commodity. At the same time, when such a contract is concluded, the price is agreed upon in advance. This type of contract is very convenient for both parties, as it allows avoiding situations where sharp price fluctuations in the future will cause additional problems in price setting.
Let's return to exchange-traded futures. The basis of any contract is an underlying asset, be it a stock, oil, index or gold. This explains two types of contracts: delivery contracts and settlement contracts.
A deliverable futures contract implies that by the contract expiry date (expiration date) the seller will sell the underlying asset and the buyer will buy it back. Shares and bonds are the underlying assets of a deliverable futures contract.
A cash futures is used when the underlying asset cannot or is not readily available in the account, e.g. indices or commodities. In this case, the difference between the purchase and sale of the contract will simply be credited/debited to your account.
The features of futures in relation to other types of contracts: Transactions are only made in commodities whose value cannot be predicted several periods in advance. The conclusion of a contract may be accompanied by insurance, which will guarantee the performance of both parties or compensation from the clearing company. The risks of futures are minimised by playing the producer/buyer price game as close to zero as possible in advance.
The increased liquidity of such an asset is achieved by having clear terms of the transaction known to both parties to the contract well in advance of the actual delivery of the commodity. In real life, this allows you to hedge against unpredictable price spikes and to budget future costs.
When speculating on futures contracts, daily changes in the liquidity of assets bought/sold are important. To calculate the profitability of trades, an indicator variation margin is used, which is calculated from the difference in price on different days, taking into account the contracts involved in the financial transactions.
Regular calculation of variation margin allows you to determine in a timely manner when to sell previously purchased futures.
The indicator is calculated at the end of each trading day, which allows you to see the dynamics of changes in profit or loss from trading on the exchange. By the current value of the variation margin, the trader determines the need to sell contracts or to continue waiting for a better moment to trade.
Online futures trading platform
Advantages of working on the online platform for futures trading in the UAE:
- Guaranteed protection of personal data and deposits, confirmed by the trust of thousands of traders from different countries.
- A full range of efficient tools for the modern currency market, allowing you to enter, control and close transactions online.
- Wide range of free educational programs, interestingly written articles, topical news.
- High class support service.
- Minimal brokerage costs for a trader.
There are certain risks involved in all stock market transactions. There are no 100% guarantees in this world. The key objective of a skilled trader is to minimise such risks by using a wide arsenal of legal means. If you are serious about trading, be prepared at all times for certain losses, which, with the right strategy, will always be less than your total returns.
Where to start with software?
Registering is really easy, you have to fill in the registration form on the website. At first it is simple basic information such as your username and email address. Later on, when you need to withdraw funds from your account, you will need to go through a more detailed and complex security check.
Open a demo account
A training account is an account through which you can try out the functionality of the platform on your own and learn about its features without any risk. Virtual funds are used here, so you do not need to use your own money when you make transactions. Your profit on trades will also be virtual.
Real prices and a fully identical interface to your real account will give you the experience of investing on the platform and avoid risks to your investment.
If you have any questions, contact customer service or the user chats.
How to fund a real account?
Once you've studied the market and chosen the best trading strategy, you can start trading in the real market. To do so, just fund your account by any convenient way. Usually, it is a bank transfer, a credit card or a payment system. The minimum deposit amount for new depositors may vary from platform to platform. Before you start trading, you should make sure that you are ready for certain risks, and that you have experience and knowledge.
What is important to remember when trading futures in the UAE?
Trading involves a certain amount of risk. The maximum risks arise from short positions, and the minimum risks arise from arbitrage operations. To avoid losses and make good profits, it is important to develop a good trading strategy. Market experts recommend using futures as the best financial instrument.
The trader's task is to correctly predict the movement of the asset price. With the correct calculation of the price of an asset in the future, the trader will make a profit, but if his assumptions turn out to be incorrect, a loss will follow.
Trading futures contracts often involves the use of leverage. But it is very important to understand and remember that using a multiplier in trading entails certain risks, increasing not only the potential profit, but also the potential loss.
A trader who decides to trade futures contracts has many factors to consider, such as the length of the trade, the exchange rate, the minimum investment amount, and more.
By buying futures, a trader agrees to buy or sell an asset on a specific date. It is important to analyze the current market trends as accurately as possible in order to predict the value of the asset at the date of the end of the contract.
Successful futures trading implies a good knowledge of fundamental and technical analysis methods, with the help of which they make a forecast for the price of an asset.
Modern trading platforms are equipped with good analytical tools that help the trader in his work. These are indicators for technical analysis, as well as a news section, an economic calendar and a "market analysis" section.
It should be remembered that learning trading takes a certain amount of time. It is difficult to get a good result in a short period of time. Use the video tutorials posted on the platform, which clearly and clearly set out all the important points of trading. After studying the video tutorials, practice on a demo account. This is a great opportunity to try trading without risking your own capital. Futures is a rather complex financial instrument that is primarily intended for professional players and experienced traders. Working with them without training is extremely dangerous.
Nevertheless, following the recommendations of experienced traders, learning, practicing, sooner or later you will get a good result. Open a practice account and try to trade futures today. It's free and completely safe!