As its name saying, the word ‘Short’ is referring to a contract made between two parties for a short time of interval, normally one year. This contract may include buying or selling of stocks, options, futures or Forex. Online trading contracts are short terms contracts. There are mainly three types of contracts - Day Trading, Swing Trading and Position Trading.
Day Trading Contract: This is a very active type of trading where the traders perform actions in same day as they will not have any liability after the market closes. The trading is finished in seconds or minutes for very small capital gain per contract or share. Scalpers and Momentum traders are two of its styles. The first style includes the trading of large amount of shares within seconds for very small capital gain. The latter, which considers trends with that day, is slow compared to the Scalpers style. Swing Trading Contract: Similar to the day trading, but process may last for up to 4 days. It is risky as the traders like to take overnight risks by holding the stocks.
Position Trading Contract: Market plays a major role here. Depending on the market trends, the time to complete one trade may goes up to days, weeks or months. However it has higher risk, these traders have higher gain percentage.
In UAE, you can find a lot of service providers who offer the platform for Forex trading. Orient Financial Brokers (OFB) is the name of one such service provider offering Forex services in UAE as well as in all over the Middle East.
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