Different Types of Trading

Nowler

Established member
789 58
you need experience
1 man like Scalping, other like long term Fundamental trading based on Forex News Calendar trading, other people like MAthematic based automated systems, pipsing, indicators... etc) also in market there lots of instruments. Now many traders trade Bitcoin.. not only FX pairs or Stocks

But first of all when you start trading at real account you must learn broker conditions and client agreement, some brokers do not accept scalping and swing type, some brokers say that you do not have to cloe order < 6 pips of profit, or pause between orders must be > 5 min..etc, very careful with that
Thank you very much for the input sir.

I have look a little into some of the terms between my broker and I, such as checking to see if scalping was permitted. But I should look more closely.

Thanks
 

Merk Porter

Junior member
44 0
Trading has been an income source for many people around the world today. Trading activities are basically being conducted from two basic types of financial market. Centralized market where equities, bond and futures, etc. are being traded and exchanged: centralized market has fixed regulations and monitoring authority. While decentralized market gives floor to trade and exchange forex, forward or option: decentralized market is based on over the counter place with no strict regulation.
 

new_trader

Legendary member
6,181 1,258
Futures

Two parties agree in a futures contract to buy a tangible or intangible product or asset at a specified price and on a specified future date. The traded asset is called the underlying and may be a commodity, currency, interest rate, stock market index or catastrophic insurance loss. The trade date is called the settlement or maturity date. The agreed price is called the futures price. Both parties are obligated to carry out the contract.
I know it's an old thread, but this definition doesn't seem right. Two parties don't agree or specify anything. Futures are traded anonymously on an exchange and the price of the contract is locked in the instant the trade is made on the exchange. The reason they are called futures is because they have an expiry date in the future and that never changes. Eg/ e-mini S&P500 is always the 3rd Friday of the contract expiry month. Futures contracts are either cash settled or physically settled. Again, none of this is agreed in advance with anyone, each contract has settlement terms outlined by the relevant exchange.
 

J_C_Anderson

Member
99 14
Actually, futures seems to be bilateral agreement, as your counterparty is not a broker or exchange. If the phsicall settlment is specified, someone have to deliver you the commodity.
 

new_trader

Legendary member
6,181 1,258
Actually, futures seems to be bilateral agreement, as your counterparty is not a broker or exchange. If the phsicall settlment is specified, someone have to deliver you the commodity.
Yes, it involves two parties, 1) A person who buys the contract and holds until expiry because they wants to take delivery, 2) A person who sells a contract and holds until expiry because they want to deliver.

But these two traders don't make an agreement with each other. The person who buys a contract today may not take delivery from the person who sold the contract today.

When you think about it it can't work like that. If a person wants to buy 100 contracts they aren't matched with someone selling 100 contracts. It could be 100 individual sellers.

The person who sold the contract today may just be a speculator who doesn't intend to hold until expiry. That speculator may close out the position tomorrow, and pass the contract on so to speak.

All that matters is the person who holds the short contract upon expiry delivers the physical commodity according to the contract specifications.

In the case of gold, the rule is:

6
.
Gold must be delivered to a Depository by a Carrier as follows:
a. directly from a Producer;
b. directly from an Assayer, provided that such gold is accompanied by an assay certificate of such Assayer; or
c. directly from another Depository; provided, that such gold was placed in such other
Depository pursuant to paragraphs (a) or (b) above

ref: https://www.cmegroup.com/content/dam/cmegroup/rulebook/COMEX/1a/113.pdf


It doesn't say anywhere that gold must be delivered to the person who bought the contract!
 

NVP

Legendary member
36,280 1,787
Hello folks!

I don't believe it's good enough to have a general idea when it comes to trading, so for that reason I feel I should make every effort to understand this fully.

How many different types of trading is there?
Is it just Stocks and Derivatives over all and then one could further breakdown derivatives to forex, commodities etc...

I'd really appreciate it if someone could help me break this down.
Only 2 types of trading .........

Good trading (profitable)
Bad Trading (unprofitable)

95% of wannabees end up in one of these categories .....;)
 

Nowler

Established member
789 58
Only 2 types of trading .........

Good trading (profitable)
Bad Trading (unprofitable)

95% of wannabees end up in one of these categories .....;)
Indeed :)

1 year and 1 day ago since I made this thread.
What a difference a year made!

Though it's a little cringe when I see some of my earlier questions :whistling
 

mason_ritter

Member
76 3
Indeed :)

1 year and 1 day ago since I made this thread.
What a difference a year made!

Though it's a little cringe when I see some of my earlier questions :whistling
There is no reason to cringe, no one was born knowledgeable! You learn, you grow, you become a better trader.
 
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NVP

Legendary member
36,280 1,787
Indeed :)

1 year and 1 day ago since I made this thread.
What a difference a year made!

Though it's a little cringe when I see some of my earlier questions :whistling
well I can look back to 2004 and my early posts when sharing my ideas ......jees it makes me laugh :LOL:
 
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mason_ritter

Member
76 3
When I think about what I knew and didn't know as a newbie I laugh too, but then again, I am just glad I have outgrown that phase.
 

hatemypips

Well-known member
315 11
When I think about what I knew and didn't know as a newbie I laugh too, but then again, I am just glad I have outgrown that phase.
I have less optimistic view on that. I think it's impossible to learn trading in its entirety because markets challenge us every day increasing in complexity. If you can't keep up with its pace you will be thrown out of the board.
 

Xevield

Junior member
22 1
I agree with you that there are different types of traders present on the Forex market. You need to observe your abilities and skills in order to choose a style for your trades. I am basically a defensive trade who believes in long-term. Thank you guys!