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How to read futures charts?

If you want to know how to read futures charts, start with candlesticks. When looking at bars or candlesticks, each will show the opening and closing prices as well as the highs and lows for that time period. The top line (or where the wick ends) is the high. And the top of the candle is the open if red and close if green.

Why should you trade futures?

When we wish to trade futures, we’re lucky enough to have the abundance of the info provided by their quotes and charts. The charts show us in real-time the changes in supply and demand. When we’re good at reading the signs that are provided by these charts, we’re more likely to make profits in our trades.

What are index futures?

Index futures are contracts to buy or sell a financial index at a set price today, to be settled at a date in the future. These contracts were originally meant solely for institutional investors but are now open to anyone. Portfolio managers use index futures to hedge their equity positions against a loss in stocks.

What is a futures contract?

Futures can be used for hedging or trade speculation. Futures are derivative financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and set price. A futures contract allows an investor to speculate on the price of a financial instrument or commodity.

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