{"id":4365,"date":"2020-04-07T12:45:53","date_gmt":"2020-04-07T12:45:53","guid":{"rendered":"https:\/\/trade-malaysia-option.com\/dagangan-hari-berjangka-di-malaysia-tutorial-dan-pialang\/"},"modified":"2023-02-12T10:38:38","modified_gmt":"2023-02-12T10:38:38","slug":"dagangan-hari-berjangka-di-malaysia-tutorial-dan-pialang","status":"publish","type":"post","link":"https:\/\/trade-malaysia-option.com\/en\/dagangan-hari-berjangka-di-malaysia-tutorial-dan-pialang\/","title":{"rendered":"Day Trading Futures in Malaysia \u2013 Tutorials And Brokers"},"content":{"rendered":"

With so many instruments out there, why do so many people turn to day trading futures?\u00a0This page will answer that question, break down exactly how the future works and then break down its benefits and drawbacks.\u00a0You will learn how to start trading futures, from brokers and strategies, to risk management and learning tools.\u00a0Finally, the fundamental question will be answered;\u00a0can you really make daily money futures for a living?<\/span><\/p>\n

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What’s Next?<\/span><\/h2>\n

Brief history<\/span><\/strong><\/p>\n

Before we look at how to get started day trading options and index futures, it helps to understand their humble origins.<\/span><\/p>\n

Futures contracts are some of the oldest derivative contracts.\u00a0They were born from farmers’ need to hedge against crop price changes, between planting and harvest.\u00a0That’s why many futures that are still traded today, are livestock like cattle, plus grains like wheat and corn.<\/span><\/p>\n

The futures market has exploded, including contracts for any amount of assets.\u00a0You can now trade precious metals like gold, industrial metals like aluminum, stocks like the S&P 500, as well as treasury bonds.<\/span><\/p>\n

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Financial Derivatives<\/span><\/strong><\/p>\n

At first, the concept of the future may sound a little confusing, but they are actually surprisingly simple.<\/span><\/p>\n

Derivatives are when a financial instrument derives its value from the price fluctuations of another instrument.\u00a0So, for example, the value of a derivative linked to the S&P 500 is simply a function of price movements in the S&P 500.<\/span><\/p>\n

The S&P 500 is effectively a cash index, structured into contracts that sell shares like stocks.\u00a0Futures contracts have prices that go up and down like stocks.\u00a0In fact, your futures chart may look similar to your stock chart, with opportunities to buy low and sell high.<\/span><\/p>\n

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Leverage<\/span><\/h2>\n

An important component, if you are trading futures, is leverage.\u00a0This means you don’t have to pay the entire contract when you start trading.\u00a0Instead, you pay a minimum upfront fee to enter a position.\u00a0This initial margin depends on the margin requirements of the asset and the index you wish to trade.<\/span><\/p>\n

Various<\/span><\/strong><\/p>\n

As a trader, it is important to know the nuances between different futures.\u00a0Examples of trading futures vs stocks are different, for example.\u00a0You don’t buy stocks, you trade standard contracts.\u00a0Each contract has a set standard size that has been set by the exchange where it appears.<\/span><\/p>\n

Suppose the contract size for aluminum futures is 50 troy ounces.\u00a0One aluminum futures contract will see you control 50 troy ounces.\u00a0If the price of aluminum moves by $2, you will see a profit of $100 ($2 x 50 ounces).<\/span><\/p>\n

Terminology<\/span><\/strong><\/p>\n

Here are two terms that you will often come across and need to understand:<\/span><\/p>\n

First Notice Day<\/span><\/strong><\/p>\n

The first futures day (FND) begins the day after an investor who has purchased a futures contract may be obligated to take physical delivery of the underlying commodity.\u00a0FND will vary depending on contract and exchange rules.<\/span><\/p>\n

Note that most investors will close their positions before FND, because they do not want to own the physical commodity.<\/span><\/p>\n

Last Trading Day<\/span><\/strong><\/p>\n

The last trading day of oil futures, for example, is the last day that a futures contract can be traded or closed before delivery of the underlying asset or cash settlement.\u00a0Typically, most futures trades result in cash settlement, rather than physical commodity delivery.\u00a0This is because most markets are hedging or speculative.<\/span><\/p>\n

You need to account for the unpredictable price fluctuations on the last trading day of crude oil futures, or natural gas futures, for example.<\/span><\/p>\n

But before you start trading, you need to get a handle on the asset of your choice, because different future quantities vary.<\/span><\/p>\n

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The Best Markets for Day Trading Futures<\/span><\/h2>\n

We’ve touched on some of the assets you can trade, but what other options are there and which market offers the greatest potential to turn to intraday traders?<\/span><\/p>\n

Many argue that the E-mini S&P 500 is the place to go.\u00a0You can trade around $75,000 worth of shares with just $3,500 margin, making it easy for all traders.\u00a0You will find the S&P E-mini futures are all traded electronically, ensuring fast execution speed and promising possibilities for automated trading software.<\/span><\/p>\n

Alternatively, consider Nasdaq E-mini futures, Russel E-mini futures, and Dow futures.\u00a0All offer many opportunities for futures traders who are also interested in the stock market.<\/span><\/p>\n

Additionally, there are few other markets that offer the volume and volatility needed to turn intraday profits.\u00a0Nuts, coffee, natural gas, Japanese yen, Euro FX, crude oil, and 10-Year T-Notes all deserve attention.<\/span><\/p>\n

However, before you put all your capital on the line, remember that each market has its own attributes and careful analysis is required to uncover the right market for your individual trading style and strategy.<\/span><\/p>\n

Why Trade Futures?<\/span><\/h2>\n

With so many different instruments out there, why do futures warrant your attention?\u00a0Five very good reasons:<\/span><\/p>\n

1. Low Cost<\/span><\/strong><\/p>\n

While the stock market requires significant initial capital, futures do not.\u00a0You can open an account and start trading with less than $5,000.<\/span><\/p>\n

The best part though, you don’t have to maintain that amount.\u00a0You only need enough to cover the margin.\u00a0Margin is usually around 3-9% of the full contract value, so you really only need a balance of a few hundred dollars.<\/span><\/p>\n

2. Forward Transition With Underlying Assets<\/span><\/strong><\/p>\n

With options, you analyze the underlying asset but trade options.\u00a0However, your profit and loss depends on how the option price changes.\u00a0The underlying asset may move as expected, but the option price may remain stagnant.\u00a0Futures, however, move with the underlying asset.<\/span><\/p>\n

This means you can use technical analysis tools directly on the futures market.\u00a0You don’t have to worry about complications with derivative pricing.<\/span><\/p>\n

3. FINRA Pattern Day Trading Rules DO NOT Apply<\/span><\/strong><\/p>\n

If you meet the minimum requirements (using a margin account, trading the same security more than four times in a five-day period, etc.), you must keep at least $25,000 in your trading account.<\/span><\/p>\n

As a day trader, you need margin and leverage to profit from daily changes.\u00a0Thankfully, if you day trade futures, this rule doesn’t apply.\u00a0This provides access to the market for thousands who would otherwise be unable to meet the strict requirements set by FINRA.<\/span><\/p>\n

4. Zero Restrictions On Short Selling<\/span><\/strong><\/p>\n

As a short-term trader, you need to make the best trades, be it long or short.\u00a0With no restrictions on short and long positions, you can remain impartial and react to your current market analysis.<\/span><\/p>\n

While the stock market does not allow this.\u00a0You are limited by the variable stocks offered by your broker.\u00a0You have to borrow stock before you can sell it to make a profit.\u00a0In fact, financial regulators enforce strict rules to prevent short selling, hoping to prevent the stock market from collapsing.<\/span><\/p>\n

5. Reliable Volume Data<\/span><\/strong><\/p>\n

Because there is no central clearing, you can benefit from reliable volume data.\u00a0Getting reliable volume data from forex traders is impossible, because forex trading is centralized, so no one has all the information.\u00a0However, with the future, you can actually see the players who are interested, which allows for accurate technical analysis.<\/span><\/p>\n

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Weakness<\/span><\/h2>\n

While there are many reasons for day trading futures, there are two serious drawbacks.<\/span><\/p>\n

1. Payment<\/span><\/strong><\/p>\n

It can be very easy to bypass the futures market.\u00a0Too many marginal trades can quickly add up to significant commission fees.\u00a0Therefore, you may have made many successful trades, but you may have paid a very high price.<\/span><\/p>\n

If you have $25,000 in your account and trade one S&P E-Mini contract, you could pay anywhere between $7,500-$12,500 in commissions each year.\u00a0That means you need at least a 25% return to break even.\u00a0Therefore, you need to have a careful money management system otherwise you may lose all your capital.<\/span><\/p>\n

2. Low capital<\/span><\/strong><\/p>\n

Trading psychology plays an important role in making a successful trader.\u00a0But since you can start trading futures with minimal capital, you have greater psychological pressure to overcome.\u00a0This is because you cannot afford to lose much.\u00a0This pressure can lead to costly mistakes and can quickly see you pushed out of the trading arena.<\/span><\/p>\n

How to Start Trading Futures<\/span><\/h2>\n

Day futures trading for beginners has never been easier.\u00a0Technology has made brokers, accounts, trading tools, and resources easier to find than ever before.\u00a0So, how do you go about the futures market?<\/span><\/p>\n

Minimum Capital Requirement<\/span><\/strong><\/p>\n

It is one of the most accessible markets because you need less capital than you would for stocks, but more than you do for forex.\u00a0Although there is no legal minimum, each broker has different minimum deposit requirements.<\/span><\/p>\n

E-mini futures have low trading margins.\u00a0With E-mini S&P 500 futures, you can find a broker that offers just $500. Therefore, you need $500 and enough to cover any trading margin and price movements in your position.<\/span><\/p>\n

Margin positions vary from broker to broker, however, TD Ameritrade and NinjaTrader offer attractive margin offers.<\/span><\/p>\n

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Choosing Broker A<\/span><\/strong><\/p>\n

This is one of the most important investments you will make.\u00a0Most day traders will want a discount broker, offering more autonomy and lower fees.\u00a0What should you look for in a futures broker?<\/span><\/p>\n