we walk you through the whole range of trading possibilities in the area of forex, futures, and stocks. Take your informed decision after reading this article!

There’s a lot of opportunity going around when you area day trader looking to find the most profitable deals on your investment. Day traders can trade not only in stocks but also in futures and forex. But let us first examine the attributes each of stocks,Guest Posting futures, and forex.

Attributes of stocks
A stock as security stands for ownership in a corporation. It also stands for the stock owner’s claim on a portion of the corporation’s income and assets.

Any public traded company issues stocks.

While there’s no provision for leverage, there is a commission that must be paid to the broker. There are securities regulators all over the globe regulating th behaviour of stock trading through their control of stock exchanges. The latter are accountable to securities regulators. The liquidity varies across the board.

Taxes must be paid on stocks. The trader may pay long term or short term holding taxes. Of the financial instruments under discussion, only stocks entitle you to receive dividends. When it comes to the ease of taking a short trade, the results vary across stocks (but going long is definitely easier).

Attributes of futures:
A futures contract is basically an agreement to purchase/sell assets at a predetermined price, delivered and paid first a future date.

Shares and commodities can be found in a futures contract.

Wel known futures stem from commodities, primary examples being metals, grains, energy, etc. there are futures trading regulators in every important region of the world.

Leverages are available. The liquidity varies across futures. Ass far as taxation goes – Irrespective of the holding period length, 60% of gains are considered long term capital gains.40% are deemed short term capital gains.

There are no dividends on futures. In the case of futures, it is easy to take a short trade.

Attributes of Forex:
FX trading is the trade-in national currencies taht takes place in a global decentralised marketplace. The trade takes place in currency pairs.

Well-known currency pairs include EURUSD and USDJPY.

Leverages form a major attribute of FX trading.

As far as broker commissions go, there are none. Nevertheless, the ‘spread’ or the difference between the buying and selling price of the underlying asset, has to be paid to the broker. Despite its global nature, FX trading has no central world authority as a regulator. Rather, securities regulators are regional ion nature and the world is divided for regulation purposes into RMs or Regulated Markets. Some markets are more strictly regulated than others.

When it comes to liquidity, the FX markets are without peer. With over $ 6 trillion traded globally each day, liquidity touches the sky. The taxation regimen is the same as that for ordinary income. Dividends play no role here. Taking a short trade in currency pair trading is easy.

Now let us look at how day trading treats stocks, futures, and forex trading.

Day trading occurs when, in a margin account, there is buying/selling of the same security on the same day.

What happens when you day trade stocks?
Stocks make you the owner in a corporation, by virtue of ownership of ‘shares’. A pattern day trader does at least one trade per day. Besides market hours, there are the pre-market hours, wherein the traders have an opportunity to open trades much in advance. Trading is at its peak when volatility and volume are high.

The initial capital to initiate yourself into stock trading is rather a high vis a vis futures or forex trading. Also, trading at off-peak hours tends to be less rewarding, so that you must ensure your availability during peak trading.

What happens when you day trade futures?
You have futures to trade when it is agreed that you will buy/sell an asset at a predetermined price at a future date. You may bet on the market price movement direction. The flexibility of your futures trading is predicated upon the amount of capital you can invest.

There’s no minimum stipulated amount as a requirement to start futures trading. For starters, you could get the hang of a futures contract, and keep trading it for foreseeable future. If you have really cut your teeth at futures trading, you could go after futures that are experiencing prolific volume or movement on the trading day in question.

What happens when you day trade in Forex?
You invest in Forex trading after forming a reliable estimate of trends based on rate fluctuations. Given the risks involved, you should be ready to omit no more than 1% of your forex account on a single trade. Forex trades are open all day, all night. Since national currencies are involved, when you trade a particular currency pair is predicated upon market hours in the countries in the currency pair.

For instance, the EUR/USD by recommendation is traded between 9 am and 2 pm Eastern Time. FX day trading is not time-intensive either so that you can moonlight as a Forex trader whilst holding down your own office job.

The best day trading instruments:

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Futures Trading Overview

This article provides information about futures trading and commodity trading. Learn the history, practice and types of futures trading, differences between forward contracts and future contract. Know more about the different commodity products available for futures trading.

Futures trading or commodity trading first started in Japan and in Holland,Guest Posting somewhere in 18th century. In US, commodity trading started by establishing a commodity market place in 1840s century. The market offered both sport delivery and futures contracts. Futures trading differ from spot trading in different aspects. Spot trades are done for actual (and real-time) cash/product deliveries but futures are traded for hedging possible price uncertainties. Spot trades are done usually with a two-day cash delivery method where futures trades are done for usually 3 months durations. The futures trades for contracts which expire by next month or less is also often called spot trades. The first products available for futures trading include meat, grains and live stocks. Later futures contracts for a variety of products were implemented including those for energy products, metals, currencies and currency indexes, stocks and stock indexes, and private and government interest rates. The CME (Chicago Mercantile Exchange) is responsible for the introduction financial features in 1970s, which very soon became the most traded futures type. All futures have unchangeable contract specifications which are guaranteed by the clearing houses and margined to minimize counterparty credit risks. They are traded by open outcry of screen in public domain. Futures contracts are almost similar to forward contracts, and often the names are used interchangeably, but forward contracts are typically traded OTC (over-the-counter) through issuer-client or broker-dealer interactions where futures are traded through centralized markets. Commodity futures are the most common form of futures and are traded all over the world. With the passing of time new and new agricultural, livestock and metal/natural commodities are becoming available for futures trading. Futures options are, like stock options, the right to buy or sell futures contact on a certain price at a specific time. A call futures option is the right to buy a futures contract and put futures option is the right to sell a futures contract. Stock features or single-stock features are futures contracts for owning an underlying stock. Stock features usually have greater leverage and the holders of futures do not receive/pay any dividends. Stock index futures are meant for multiple purposes like hedging, trading and investing. Hedgers for owning stocks or index options, traders for benefiting form price volatility, and investors for achieving certain goals by not directly owning the stock. Currency features are futures contracts that enable the holder to buy or sell a currency at specified rate at a future date. As these futures are marked-to-market daily, the forex investors can easily overcome the obligation to sell or buy currencies before the delivery date. In US, the futures trading are regulated by CFTC (Commodity Futures Trading Commission). The major worldwide futures trading markets are CBOT (Chicago Board of Trade), CME, ICE Futures, Euronext.liffe, London Commodity Exchange, Intrade, London Metal Exchange, TOCOM (Tokyo Commodity Exchange), NYMEX (New York Mercantile Exchange), NYBOT (New York Board of Trade), Sydney Futures Exchange, etc.

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