
Futures, some important tips!
If you would like to be actively involved in your investments, then ‘futures trading’ might be something for you. A future is also called a term. The name says it all: in this contract it is agreed to deliver on a term. In this case it is agreed to deliver a product at a certain time. The price that must be paid upon delivery is agreed in advance. This means that you run more risk than when you do index investing , for example . It is important that you have sufficient knowledge to start trading futures, here are 4 tips!
- Knowledge, knowledge and more knowledge
Super important: know what you are doing, This applies just a little more when you want to trade in futures. This is because with futures you can lose more than you bet: you can even trade with amounts that you do not even have in your possession, this is due to the use of leverage .
- Take the risk into account
Monitor your risk well. This means that it is wise not to invest more than 1-3% of your investment capital per trade. If you do this, it can happen that your entire capital is lost. This is also the risk of trading in futures.
- Playing with water and fire
‘You are playing with water and fire’ or: you are taking risks! Keep that in mind every time you trade in futures. Taking profits and losses is part of trading in futures, because of the leverage large amounts can be involved. A real top sport, because you have to work so concentrated and responsible! So don’t see it as a hobby, an everyday job, because then it can turn out badly.

- Well begun is half done: gain experience!
Gain experience so that you can master the basic techniques. One way to gain experience is by trading with fictitious money, this is also called ‘sim tradig’. With trading in fictitious money, sim trading, you gain experience with the technical aspects. The psychological aspects are not yet discussed. If you have practiced with sim trading, it is time for the real thing! To first practice with both the technical and psychological aspects, you can start with ‘live trading’. Then start small to limit risks.
Start trading futures!
Did this blog spark your interest in investing in futures? Then check out our knowledge base on futures for more interesting information or check out our comparison tool to compare brokers!