Online futures trading platform in Qatar
Investing in futures is becoming increasingly popular around the world. Previously, only banking institutions, international companies and other large corporations, as well as non-poor citizens could invest. Now the situation has changed considerably. There is no need to visit banks, offices of companies to start investing your money in securities or other assets. All you need is a computer at home and access to the Internet. That is, every average citizen of Qatar has a chance and access to the stock exchange, and all this at home. Online investing on a trading platform has become a reality. Having a starting minimum capital, you can start trading on the stock market, that is, investing. A personal broker, which is an online futures trading platform in Qatar, can help you do this.
Choosing an online broker
The constant involvement of more and more people in trading these days leads to high competition among brokers. Companies are trying to excel at developing new products on an online futures trading platform to attract more potential investors.
A trading platform is a software program that provides access to the stock market and makes it possible to buy (sell) on it online.
Among a variety of platforms, it is necessary to choose the one that will be comfortable and clear to trade in, to use constantly in the future. For this potential trader needs some time to choose the best platform in his opinion. The first thing you need to pay attention to is the availability of all necessary documents at the broker. The main document in the intermediary activity is a license for the right to conduct brokerage activities. Reviews and recommendations about the broker's reputation play an important role. The following criteria for choosing a program for trading - comprehensible registration, minimal deposit and withdrawal amount, demo account (free virtual account), wide range of financial instruments, training in the form of video lessons, ability to communicate in chat to exchange experience and information about the market.
In the process of professional growth, depending on experience of exchange trade at certain stages one platform can be actual and then another. Over time the choice of program for trading is subject to reassessment. But before you make a choice, you should know about the main characteristics and peculiarities of the online programs for trading on the exchange, and then, based on the priority indicators, choose a convenient platform for trading.
Concept and types of futures
Nowadays more and more attention is paid to futures at the stock exchange.
A futures contract is an agreement when the seller guarantees delivery of an asset (security, commodity, stock, etc.) to the buyer at an agreed price (in the future, but at the current market price) on a certain date and time.
In investing, the asset in the futures is a bond, stock, cryptocurrency, currency pair, inflation rate, etc.
The set price of the commodity that will be delivered after a certain date, at the time of the transaction, is the meaning of the futures contract.
Futures contracts have a specification, a document which contains all the basic terms of the contract. These are the name, the ticker (the short name of the asset on the exchange), the contract type (settlement or delivery), the number of the underlying asset units for one futures contract, the circulation term, the delivery date, the minimum price change (step) and the minimum step value.
Futures may be settled or deliverable. A deliverable contract implies delivery of the asset at a certain date and price. A cash futures contract doesn't suppose any delivery. When the term of the contract expires, the profit (loss) is recalculated between the parties to the contract as an addition of money and writing off.
High leverage is commonly used in futures markets. Leverage is the borrowed funds provided by a broker for trading in order to increase income from the investment. Borrowing money allows the investor to open much larger positions, as if he has more capital on his account. However, the trader will suffer losses in the same proportion. Brokers can afford such operations, because their losses are limited by the value of the trader's account balance.
The investor does not need to invest the full price of the contract at the conclusion of the transaction. Instead, the broker needs an initial amount of margin, which consists of a portion of the total value of the contract.
Margin is a collateral, which makes it possible to borrow money or goods used for speculative exchange transactions. Its main difference from credit is that the amount of money received usually exceeds the amount of collateral (margin).
Availability of strategies
One of the main advantages of futures is the availability of different trading strategies.
Based on the investor's goals, a strategy for trading futures, that is, your plan for behavior on the exchange, is determined.
Let us consider the most popular online trading strategies:
- Risk hedging. Futures transactions give us the opportunity to reduce risks, by hedging both real activity and investment transactions. This is facilitated by fixing the price already now on the asset we choose. The purpose of hedging is to prevent losses from potentially unfavorable price changes, not to speculate.
- Arbitrage operations. The essence of arbitrage operations is to profit from price differences of the same assets. We can say that there is a "game" on spreads. Arbitrage can be temporal or spatial. Spatial arbitrage takes place on different markets but at the same moment in time. With temporal arbitrage on the contrary - deals are made on the same market at different times.
- Speculative trading. High liquidity and leverage allow the speculator to profit from the price difference between buying and selling futures.
Traders increasingly prefer futures trading because of the security of having to pay less than buying an asset.
How to start investing, how to sign up for an online platform to trade futures in Qatar, and whether you need a demo account - let's look at all of this in more detail.
Before you start trying your hand at investing, the trading platform offers a simple and not time-consuming registration. To do this, go to the website of the brokerage company, click "register". After that a special registration form will open, which must be filled out. It includes your username and e-mail address, to which you will receive a link to confirm your registration. Just click on the link and you are already a user of the online futures trading platform.
Testing the new platform with a demo account
Demo account is a copy of a real account, through which we can try to invest in the selected platform. The demo account holds a certain amount of fictitious money for training trading operations on the exchange. From such training on a demo account can not make a real profit, but it will give an idea about trading on the platform itself. During training you can learn how to analyze the market, predict changes in the exchange, as well as choose the best trading strategy for yourself. And all these actions are without risk to the investment.
In addition, modern trading platforms contain sections with video material on investing. It is very important to thoroughly study these lessons so you can better understand the principles of the platform in the future.
Deposit and Withdrawal of Funds
The best trading platform should have easy deposits and withdrawals. After you have completed training, practiced on a demo account and learned the basics and strategies of trading on a stock market, you can proceed to make a deposit to a real account. To do so, click on the button "make a deposit". The minimum deposit amount is available to everyone and is only a few dollars. The program then provides several methods of depositing - using a bank card or online payment systems. Decent platforms cooperate with many well-known payment systems (such as WebMoney, AdvCash and others), so each user will find his own method of depositing. Exactly the same way you can withdraw funds, it is not difficult.
Investing in the Futures Market
The futures market has been the fastest growing financial investment sector in the world in recent decades. This is mostly due to the wide range of different strategies and high liquidity.
Futures trading on the online market offers a number of advantages:
- The possibility of using leverage, i.e. borrowed capital. It allows to minimize risks while carrying out of large transactions on the market;
- Minimum initial capital. When investing online, only a few dollars are enough to start trading futures on the stock exchange. It allows beginners with low starting capital to enter the market;
- High liquidity;
- Choice of convenient time for trade - twenty-four-hour trading;
- Wide diversification, etc.
Along with the advantages, it is necessary to consider disadvantages of futures trading:
- Traders risk losing an amount that exceeds the initial margin because futures use leverage;
- Margin means that if profit increases, so does loss.
After getting acquainted with the advantages and disadvantages of trading, the market seems too risky and complicated for many traders. That's why if you study market behavior and practice all the time you can make a good profit and grow as an investor professionally.
When choosing the best online futures trading platform in Qatar, be sure to open a demo account, watch the training videos and test the platform.