Futures Trading|Optimus Futures - Commodities and Futures Education Articles

Forex Trading Terms You Must Know!

Optimus Futures has recently started introducing Forex trading via LMAX (Not Available to US Based Customers).  As part of our efforts to educate traders, below are some Forex trading terms you should know:

Bid/Ask Spread Every currency pair has a Buying Price (Offer) and a Selling Price (Bid). The difference between the two is called Spread and it determines how fast you can exit with a profit if the market has gone your way. The Spread is a cost that is associated with each trade, and it is an important part of your trading method. For short term traders the Spread usually has a much bigger impact because the Spread makes up a bigger portion of their profits. Longer term traders, on the other hand, often have fewer trades and

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What Market Exit Strategy Should You Use?

Most traders spend all their energy and time trying to find better entry methods or experimenting with indicators that promise a more accurate trade entry signal. Usually these traders experience very inconsistent results and wonder why all their efforts and improved entry systems do not lead to better performance. Trade exits are a very important component of a trading strategy but most traders do not fully know how to correctly exit trades. In this article we explore the two available trade exit methods, we analyze the pros and cons and which one you should choose for your own trading.

The 2 trade exit categories
There are only two different categories of trade exits strategies. The first one uses a fixed take profit order: when entering a trade, the trader picks price

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Multicharts Trading Platform and Software: Review and Interview

This week we conducted an interview with Dave Masalov, Customer Care Manager at Multicharts. MultiCharts is an award-winning trading platform that has gained popularity with both automated and discretionary traders due to its quick learning curve and clean interface coupled with efficient and common sense layouts. It has established trading integrations with multiple data feeds such as TT, Rithmic and CQG while also facilitating different asset classes like Commodity Futures and Forex.

Optimus customers trading on Multicharts have always been very impressed with their stability, support and execution. So we wanted to chat with Dave and discuss the software and how they plan to differentiate themselves in the crowded futures trading platform marketplace.

What did you think was missing from other futures trading platforms when you first started building Multicharts?

DAVE: When we

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Why you should avoid the “overbought” mindset to make better trading decisions

Indicators are very popular and almost all traders use, or have used, some sort of indicator before. At the same time, the vast majority of traders don’t really understand what their indicators tell them and how to use indicators effectively. This goes so far that traders have been passing on inaccurate information about indicators for years and even decades. If you want to be successful in the trading business it is essential to have a very deep understanding of the tools you use to make your trading decisions.

In this article we explore the myth of the overbought and oversold indicator reading and why misinterpretations can lead to false trading decisions.

An introduction to overbought and oversold
Overbought and oversold readings can be found on almost all oscillator indicators. The most common

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Market Correlations. Should you look at other markets when you trade only one market?

Financial markets are complex constructs and highly interwoven. These characteristics offer some unique and interesting opportunities for traders. By understanding what to look for and how to use market correlations to your advantage it may be possible to benefit from it and increase the chances for trading success.

Market Correlations 101
Before we get started, let’s revisit the basics about understanding correlations.
When two markets are correlated it means that they move somewhat similar. A perfect correlation (of +1) means that if one market moves up 1 point, the other one moves the same point in the same direction. Two perfectly negatively correlated markets move in opposite ways. In between you find

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