Different Types of Trading

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.
 
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!
 
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 .....;)
 
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
 
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.
 
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:
 
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.
 
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.
 
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!
 
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!
What's your strengths and weakness then? I have troubles answering this question when it comes about describing my personal definition as a trader.
 
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.

we must never stop learning or being the eternal student .....the first time you think you’ve been cracked it ......then boy o boy will,the market destroy you
 
What's your strengths and weakness then? I have troubles answering this question when it comes about describing my personal definition as a trader.

i recommend a decent mentor to assist in this exercise once you are reasonably experienced as a trader........a good one will get you to the next level and identity and strengthen your weak points

also have a journal from day one .....and not just trading results .....everything you are thinking ......it will assist in the process.....be brutally honest ......the only way
 
Alright. We need someone to help us during our journal.It would be great to have someone tell us what we are doing well or doing wrong. Always note everything in our trading journal.
 
Types of Investment in India: When we think about the investment the first thought which comes to our mind is how many options do we have to invest. In India most popular 4 investment options for investing are:
  • Fixed Investment Instrument: Fixed investment are those types of investment in which profit is already fixed. If we talk about the profit and risk, then, in this type of investment the ratio of risk is very low. But, because of the low risk, the profit is also less.
  • Gold (Commodities): In India, investing in Gold is very popular since ancient times. Gold has been associated with prestige and pride in our civilization and culture. The risk in gold investment is very low because the gold produces in limited quantity and its price increases over time.
  • Real Estate: To invest in real estate means buying and selling of plots, land, bungalow, apartment, commercial or non-commercial shop and so on.
    Investing in property gives two types of benefits:
    a) Capital Gains
    b) Rental Income
    The Investment risk in real estate is very low. But there is no fixed way to calculate the profit in real estate. Because the investment in real estate or property is dependent on so many factors like location and so many.
  • Equity (Stock Market): Share means owning some percentage of a particular company through investing some amount in it. Which means if the company makes a profit, then you will have a profit amount based on your investment percentage. Stock Market is more risk-taking as well as the easiest option to earn money. A stock market is a profitable option, although it is risk-taking, if you have proper knowledge and guidance, free trading tips to invest in the stock market then this will be the best option.
You forgot FX it's also very popular type of investment/trading in India? Or am I mistaken?
 
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.
there are ways to trade as much as can people invent
 
there are ways to trade as much as can people invent

Well, you can put your money into stocks, commodities, forex, global indices, cryptocurrency.I would agree with you there can be as many ways of trading as you want. However one of the most common ones are scalping, swing trading, position trading and hedging .
 
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