| Now there are a range of futures contracts available | | | | of these futures are large sized ones and are not |
| on different commodities for trading ranging from | | | | suitable for small-budget traders. International issues |
| agricultural commodities to financial commodities. All | | | | and economic changes are major profit deciding |
| these products are not suitable for all traders, | | | | factor. |
| especially beginners. Novice traders, especially those | | | | 3. Futures on Food commodities: Coffee, Sugar and |
| do not have no previous experience of trading any | | | | Orange are good for trading. But food commodities |
| financial instruments should concentrate on only one | | | | usually have less trading volume and liquidity |
| or two commodities which most suit their style of | | | | compared to others. |
| trading and risk tolerance. | | | | 4. Futures on Agricultural commodities: Cotton, Corn, |
| Any commodity future contract that a beginner | | | | Oats and Soybeans are good. Seasonal climate |
| trader trade must satisfy at least two requirements; | | | | changes and local issues of production area are major |
| first the market must be liquid with high trading | | | | profit deciding factors. |
| volume and activity, second the market should be | | | | 5. Futures on Metal commodities: There are a range |
| trendy so that the novice trader can practice his/her | | | | of products available, of that gold, silver and copper |
| trading strategies effectively. | | | | are better suited for novice traders. |
| Traders willing to risk their money in futures market | | | | 6. Futures on Financial instruments: T-bonds are |
| should thoroughly aware of the products that they | | | | suitable for short-term traders and Eurodollars are |
| are going to trade. They should also be sure about | | | | suitable for long-term traders. |
| different fundamental and technical market analysis | | | | Remember, the liquidity, trendiness and profitability of |
| tools, and various risk minimizing tactics. They should | | | | all trading instruments change with time. More over |
| have done demo (practice/paper) trading to get | | | | there are many other things to be considered before |
| familiar with the market. If all these requirements are | | | | making any trading decision, which involve risk |
| fulfilled you can select from the below list of | | | | tolerance, attaining diversity, position sizing, |
| commodities futures which are liquid and trendy. | | | | short-term or long-term profit goals, trading |
| 1. Futures on Currencies: All currency futures on G7 | | | | software, fees involved, brokerage firm and the |
| currencies are liquid, but futures on currencies like | | | | market you are trading. |
| Swiss Franc (CHF), Japanese Yen (JPY) and British | | | | Mini futures contracts are available on most (all) |
| Pound (GBP) are liquid and very trendy. | | | | above instruments, which offer greater flexibility and |
| 2. Futures on Energy Commodities: All three most | | | | lesser account requirements, and are thus most |
| popular energy futures, crude oil, natural gas and | | | | suitable for beginner traders. |
| heating oil are good instruments for trading. But many | | | | |