Detailed Illustrated Guide to Contract Trading

Detailed Illustrated Guide to Contract Trading

This collection, "Detailed Illustrated Guide to Contract Trading," explains the fundamentals of contract trading, including futures and margin trading. It uses clear illustrations to simplify key concepts, risk management strategies, and order types, making it accessible for both beginners and experienced traders.

6 articles
Lesson 6 | A Guide to Understanding Single and Cross Margin Trading Lesson 6 | A Guide to Understanding Single and Cross Margin Trading
Single margin and cross margin are two ways to manage trading margins. In single margin, each position has its own margin, limiting risk to that specific trade. In cross margin, margin is shared across all positions, allowing profits from one to cover los
2025-09-08 18:25
Lesson 5 | A one-picture guide to contract positions Lesson 5 | A one-picture guide to contract positions
A contract position represents a trader's stance in the market, either long (buying) or short (selling). In a long position, traders expect prices to rise, while in a short position, they anticipate a decline. Contract positions allow traders to profit f
2025-09-08 18:16
Lesson 4 | Understanding Margin in Contract Trading Lesson 4 | Understanding Margin in Contract Trading
Margin in contract trading is the capital required to open and maintain a position. It allows traders to control larger positions with less initial investment. Leverage amplifies both potential profits and risks, and traders must maintain a minimum balanc
2025-09-08 18:13
Lesson 3 | Key insights on long and short positions Lesson 3 | Key insights on long and short positions
Long positions profit from rising prices, while short positions profit from falling prices. In a long position, traders buy assets expecting an increase, with losses limited to the initial investment. In short positions, traders borrow and sell assets, ai
2025-09-08 18:07
Lesson 2 | Benefits of Perpetual Contracts Lesson 2 | Benefits of Perpetual Contracts
Perpetual contracts allow traders to speculate on asset prices without an expiration date. They offer flexibility, continuous trading, and the ability to use leverage. With no need for rollovers and 24/7 availability, they are ideal for both long-term pos
2025-09-08 18:04
Lesson 1 | A Visual Guide to Understanding Contract Trading Lesson 1 | A Visual Guide to Understanding Contract Trading
Contract trading involves buying and selling contracts (like futures or options) to profit from price changes, without owning the asset. It uses leverage, amplifying both gains and risks.
2025-09-08 17:49