VI.7. Futures Trading Strategies.

Given that futures cover almost all areas of trading, it is not possible to choose a general strategy for them. However, you can use a number of features of futures that make them similar to each other:

– it is logical to assume that closer to the expiration date, interest increases and some traders are in a hurry to get rid of futures, another part wants to buy them. For the futures you have chosen, analyze this trend on the chart;

– the influence of seasonality on the value of commodity futures can also be used;

– a good strategy would be to watch the news and trade on bad or good news;

– ups and downs during the holidays or the ends of the weeks;

– data from meetings of the Board of Directors (announcement of the dividend policy, publication of the fin. companies’ financial statements) for stock futures.

Leave a Reply