4/10/2023 0 Comments Futures trading![]() There may not be enough opposite interest in the market at the right price to initiate a trade. Even if a trader arrives at a strong trading view, he may not be able to execute the strategy due to lack of liquidity. ![]() ![]() Level of liquidity in a contract can impact the decision to trade or not. Liquidity risk is an important factor in trading. Normally, rise in interest rates during the investment period may result in reduced prices of the held securities. The risk that an investment's value will change due to a change in the absolute level of interest rates. Clearly, this represents great amount of leverage which is defined as the ability to take large exposures with little upfront cost. In other words, a trader can take a position equivalent to Rs. For example, if the initial margin for gold is 2.5%, it implied 40 times leverage. This is the minimum level of margins required by the exchange and provides maximum leverage. Exchange sets margins at levels which are deemed appropriate for managing risks at clearinghouse level. Lack of respect for leverage and the risks associated with it is often the most common cause for losses in futures trading. One of the chief risks associated with futures trading comes from the inherent feature of leverage. Following are the risks associated with trading futures contracts: We urge you to conduct your own due diligence.Futures trading is inherently risky and requires that participants, especially brokers, are not only familiar will all the risks but also possess the skills to manage those risks. Optimus Futures, LLC is not affiliated with nor does it endorse any trading system, methodologies, newsletter or other similar service. The use of leverage can lead to large losses as well as gains. The high degree of leverage that is often obtainable in commodity interest trading can work against you as well as for you. The placement of contingent orders by you or broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading commodity interests can be substantial. ![]() Past performance is not necessarily indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. This material should be viewed as a solicitation for entering into a derivatives transaction. Please request a Free Consultation - We will take the time to understand your trading requirements and match you with the right combination of technology (platforms and datafeed) and costs (commissions and margins) and recommend an FCM tailored to your personal trading style. Low Day Trading Margins for Day & Night Sessions Accepts Non-Solicited Canadian futures accounts Trade on Rithmic, CQG, TT and CTS platforms. Robust infrastructure for CTS T4 and Trading Technologies (TT) $500 day trading margins for E-Mini S&P, E-Mini NASDAQ and Mini ($5) Dow Jonesįree Access to the Award-winning TradeStation PlatformsĢ5% Day Trading Margins on most futures contracts Universal Access to all trading platforms that route over Rithmic and CQG Datafeedsĥ0% Day Trading Margins on most futures contractsįree Access to Proprietary GAIN Trader Platform, MetaTrader 5 & iBroker Mobile App. $300 day trading margins for E-Mini S&P, E-Mini NASDAQ and Mini Dow Jones available* No Monthly Inactivity Fees / No Monthly Volume RequirementsĪccepts Non-Solicited Canadian futures accounts
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