Online futures trading platform in the Philippines
Maybe the word "futures" sounds unfamiliar to you, or maybe you are already familiar with various futures contracts, and perhaps you have experience trading futures on an investment platform? Either way, this article may be of use to you! You will learn what futures are, what types of futures contracts there are, whether to trade futures or CFDs, how to use futures trading strategies and how to use the platform in the Philippines.
Futures trading is not much different from trading in other financial markets. Of course, you need to be well aware of the timing of trading, risk management and contract size. But the process of creating a strategy for trading futures is similar.
Futures allow you to generate financial returns by opening trades on price movements in a wide range of instruments, from wheat to U.S. indices. For example, if an investor believes that the value of a particular asset will rise, they buy futures contracts when the price is falling in order to sell them later when the value of the asset rises.
A trading platform is an obligatory intermediary between a trader and the corresponding financial market, so finding a suitable free trading platform is the first priority.
Brokerage companies are most interested in making trading the most comfortable for their clients. After all, it is brokers who make a profit on every trade.
Trading financial instruments is associated with a significant risk. The value of investments may both increase and decrease and investors may lose their capital. In the case of margin trading, losses can be much greater than the capital originally invested.
Online futures trading platform in the Philippines
To begin with, if you want to trade, you need a platform. A trading platform is a multifunctional tool that all traders use without exception. With it, a trader sends a job to a broker to open or close an order.
In addition, the trading platform serves for:
- monitoring current prices of financial instruments in 24/7 mode;
- monitoring of important economic events using a built-in calendar;
- managing dozens of orders in a couple of clicks;
- сomprehensive technical analysis;
- сonnection to special trading bots.
As an additional option some terminals provide access to a demo account. This option is especially useful for beginners, as you will be trading with virtual money and trying out strategies without risking real money.
Trading futures, forex and options is risky and not suitable for everyone. An investor can potentially lose all or more of their initial capital. Risk Capital (Free) is money that, if lost, would not affect your financial well being and lifestyle. Only risk capital should be used for trading, and only people with sufficient trading capital should engage in such trading.
Many of you want to make a steady income by trading the futures exchange, but many have a fear and fear of failure. Some people think that it is impossible to make a steady income on the exchange, and that you need a lot of capital to trade successfully. The futures market is based on a zero-sum game system, which means that for every successful transaction there is a losing transaction. Statistically, not more than 10% will consistently make money, but those who can learn it will be satisfied with the results.
Features of the electronic trading platform
The terminal is the trader's main tool. Statistics show that 87% of traders try 4-5 different platforms before they find one that suits them. Each program is customised for a particular user and has a number of unique, inherent only to it, functions.
Therefore, it is simply incorrect to say that there is only one terminal worth using. Moreover, to understand why a particular program is praised, you need to try it out for yourself.
You will need more time to grasp the functionality and all the features of the platform. But eventually you will be able to analyze the market, read charts, understand signals, pending orders and other things, without knowledge of which it is impossible to become an experienced investor.
You may want to consider automated or semi-automatic trading platforms, if you are only planning to try trading for yourself. They are good for a quick start, but as already mentioned, copying trades should be approached with caution.
Nowadays we use high-tech trading software, which automates many processes and even provides built-in toolkits for technical analysis.
Let's take a look at the process of getting started with online trading platforms. To do so, we have decided to show you the steps required for a platform that offers commission-free transactions in different markets. Follow these 3 easy steps to get started today!
Create an account
Regardless of which trading platform you decide to sign up with, you will need to start the process by opening an account. This can be done in just a few minutes.
To get started, go to the platform's website and click "Create an account" or scroll down to the bottom of the page.
You will then be ready to enter your personal information such as: full name, email address and phone number. Confirm by clicking on the "Register now" button. Follow the steps required to complete the registration process. An email will automatically be sent to the email address you provide with your access details to the platform. Log in to your personal account using your email address and selected password. Here you can upload documents, manage your account, view quotes charts and deposit funds into your account.
After logging into the platform, you will have access to a demo and a real account. Everything is simple here.
A demo account is a test demo account to which the system credits fictitious training funds. This account is free.
First, try using a demo account to see if you really understand how the platform works. A demo account is an exact copy of a real account, but using it, you do not risk your money. This is a good learning opportunity and should not be neglected.
Deposit funds to your live account
When you feel ready to trade real money, you need to fund your real account. The minimum amount is usually quite low at a few dollars. There are several ways to fund your deposit and you will see the options offered on the platform. We recommend starting with small amounts until you have enough experience.
To replenish your account, click on the corresponding button on the "Replenish account" platform and follow the instructions of the system. The system will offer several options for replenishing the account, for example, using a bank payment card or any of the payment systems available on the platform. As a rule, funds are credited automatically. In some cases, registration can take up to five business days.
Withdrawals are usually made using the same methods as deposits.
How to trade successfully using online futures trading platform in the Philippines
By their very nature, futures are derivatives, i.e. artificially created exchange-traded contracts that are not so much securities as liabilities. Their essence is an agreement between two parties, a hypothetical seller and a hypothetical buyer. One wants to buy the underlying commodity/asset, but not now, but in three months' time. The other one is ready to sell this commodity. The intermediary for them is the stock exchange.
It is possible not only to buy (Buy) contracts, but also to sell (Sell) contracts without having anything at hand, except for a brokerage account with a balance on it. The transactions are made on the principle of speculating on price changes.
Futures market has its own features, but the mode of operation is the same as in Forex, options or any other exchange market.
There are many strategies and approaches to trade commodity futures. Every few years some new "trendy" trading strategies appear. Many traders, especially beginners, blindly believe that if they load the chart screen with a bunch of indicators, subscribe to some special platform and only this platform will give them immediate positive trading results.
If you think for a minute about how all the technical analysis is built, you will realize that it is based on only 4 indicators of the trading session - market opening, market closing, highest price of the trading session, lowest price of the trading session. All technical indicators are based on analysis and comparison of these major indicators. Any trading system shows what was in the past, and based on the rule that market behavior repeats itself, shows signals suggesting what is going to happen in the future.
In general, analyzing the price of an asset on the daily chart will allow you to prepare for trading the next day. At the end of the day's trading and before the opening of the new trading session you will have 60 minutes to analyse the trading session and determine your trading plan for the next day.
Take a systematic approach to futures trading.
Many people call working on the exchange a game, but in fact it is not a game, but a competent, verified system, which requires a serious attitude. Stock exchange is not a casino: you cannot make a profit here, you cannot make transactions at random.
To summarize, an online futures trading platform is a system, which allows you to make a statistical analysis of your trading, which in turn gives an opportunity to evaluate advantages and disadvantages of trading on financial markets.
On the basis of the obtained data you will be able to develop the trading strategy, which will bring a good profit.
A rule of thumb for a successful trader is to keep notes on your trades, and constantly perform statistical analysis in order to find "weak" spots in your trading strategy.
Service will greatly simplify this work. All you need to do is upload your broker`s report and the program will automatically build charts, dependency graphs and summary tables. You will be able to analyze the trade statistics by various parameters.
The online service is designed not only for experienced traders, but also for beginners. It can be used to analyse your skills and success in formulating your trading strategy.
The online service can be used as an effective tool for investors to check the performance of their asset management.