Forex trading is the best known of the whole day, but it is definitely not the only commodity swing trade that occurs. While most people are familiar with the stock markets, many people who are not involved in trading are unaware of the other markets available to day traders, some of which are traded even more widely than the stock market. For example, currency trading occurs at a rate of more than $ 2 TRILLION per day, many times higher than the volume you will find on Wall Street.
Commodity markets for intraday trading
Many of the commodity markets are involved in day-to-day transactions, including futures, options, currencies, and stocks. Some of the most popular markets for intraday trading are:
o Currency markets for currency trading. (US dollar to British pound, Euro to Swiss franc)
o Futures options contracts.
o Futures based on stock indices (S&P 500 Emini, NASDAQ 100)
o Futures based on commodity trading (corn, soybeans, crude oil)
If you noticed that the mention of stock trading was limited to index-based commodities, it’s because the US Securities and Exchange Commission has restricted daily trading in US stocks. Only intraday trading is allowed on the different indices.
Changes for intraday trading
There are a number of exchanges around the world that allow intraday trading; Some of the best known exchanges for trading commodities include the following:
o The Chicago Mercantile Exchange, best known for trading Forex and S&P 500 Emini.
o NASDAQ, which specializes in NASDAQ 100
o The Chicago Board of Commerce
o Deutsche Boerse in Europe
or Euronext Paris in France
These exchanges establish their own specifications for the markets and process each trade that takes place in their specific markets. Given the high volume of activity that occurs in investing in commodities such as currency trading, these exchanges perform surprisingly well.
It is possible to trade directly with exchanges, such as Forex trading with the Chicago Mercantile Exchange. Despite this, many intraday traders choose to go online futures and other day-to-day trading with direct access brokerage. These companies allow the daily trader to have access to all exchanges, but this access is facilitated because the investor can use the same interface for each market. In other words, the setup for Forex trading will be basically the same as the interface for online stock trading. The common interface allows investors to learn the software of a company and not five or six different packages.
What markets will you trade?
Deciding where to trade your commodities depends on several factors, such as your risk capital, your desired commodities, your trading plan, and your overall trading approach. If you are interested in currency trading, you will need different amounts of money, experience, and time than someone who is interested in trading stock indices. For a beginner investment, you may want to start with a market that has low margin requirements, a low tick value, and moves at a slower pace than something like Forex trading, where the amounts can be high and the pace it can be fast.
Regardless of the type of intraday trading you are interested in, be it Corn Futures or Forex, it is important to understand the requirements, including the terminology, exchanges, markets, and available brokers. Intraday trading can be very profitable and if an investor takes the time to go through the necessary steps: conducting technical analysis, establishing a trading plan, recording and following the news, he or she can be successful either by trading with pork belly. or entering the Forex market. .