“What is futures?” – most of the traders who trade in the financial markets know this. And what kind of beast is such an Instafucher and where did it come from? So far, few of you will be able to give correct answers to these questions, so today I will try to fill this gap.
So, ladies and gentlemen, sit back, I’m starting my story.
A long time ago … in a distant galaxy … No, not like that.
Quite recently one young (by trader’s standards), but already firmly on its feet brokerage company InstaForex, decided to diversify its arsenal with a new trading tool called Instafuches.
To be honest, there is only a name for futures, in fact, this is an option with a single strike, which is calculated at the opening of trading on Forex on Monday (00:00 terminal time).
If you are not familiar with options, then I will try to explain in simple terms.
In Forex, the EUR / USD currency pair is traded. The market opens on Monday and trading begins. We need to draw a horizontal line through the quote from which the Eurodollar trading began on the European InstaForex server. We will make trading decisions regarding the finding of EUR / USD above or below this line.
Because if at the end of the week the closing price is above this line, then the buyers have won, below – the sellers.
In order to make money on your forecast, you need to buy or sell the EURUSDweek weekly instafutures.
– Huh, you say, what are you rubbing us here? After all, in binary options the same thing!
– So, but not so! The main feature of instafutures is that here the counterparties are the same traders as you and me, and during the week IF quotes change. Therefore, it can be traded in the same way as any currency pair. But the main feature is that the trading range is limited to 0.0001 and 0.9999. This is where the freedom for fans of flat and counter-trend strategies is!
Let’s take an example.
For example, if you opened a deal to buy IF and your forecast came true, then after expiration the deal will be calculated at a price of 0.9999.
For example, if you bought IF at 0.2000 with a volume of 1 lot, then in case of a successful forecast your profit will be (0.9999 – 0.2000) * 100 = 79.99 $ (minus broker commission 0.2 * 0.5 = 0.1 $).
Is it lazy to count? No problem! All these calculations can be performed automatically using a special Instafutures calculator:
Where are Instafutures located?
You can find this trading instrument in the trading InstaForex terminal…
For this you need in mt4 right-click on “Market Watch”, then “Show all symbols” – at the very end of the list there will be instafutures:
You can also trade Insta futures in exchange web terminal…
Before you start trading, I recommend that you familiarize yourself with the information published on Instaforex website and with trade regulations…
But that’s not the most important thing, right? The main question is how much can you earn by trading Instafutures?
I will give a real example with the results of trading on one of my small accounts, which was increased by 80% in five days. And the number of profitable trades is 100%.
Just phenomenal results, right?
Naturally, such perfect statistics are very rare, so I will give the results of trading for a longer period on my other account.
Here, it is no longer 100% of profitable trades and the profit factor does not show infinity, but in principle it is also a good result:
- 85% of profitable trades;
- Profit Factor – 7.11.
For this, I take my leave. All profitable trades and all the best!