Futures speculation is a slightly more complex field of investment than general foreign exchange trading. It is an agreement to exchange currencies at a specified time in the future and at a pre-agreed exchange rate. In some cases the profits can be significant, especially when large amounts of currency are involved, but as with any speculative investment, an element of risk is present and large losses are also possible.

Successful forex futures speculators must make the most of a certain skill set and knowledge base that allows them to maximise their chances of turning a profit and minimises their chances of making losses larger than their gains. These skills include a range of strategies that are known to be effective in improving the chances of making a profit. They also involve a good understanding of the underlying economics of the system, as well as an acute awareness of the psychological side of the foreign exchange market. Confidence in currencies varies with time and has a direct effect on the value of those currencies, so being able to correctly assess when confidence is likely to drop and vice versa is a very useful asset to any Forex futures speculator.

Up to date information on the international money market is crucial to success in Forex futures. Keeping an eye on a country’s key economic markers, such as tourist industries and import/exports can help a Forex speculator to understand the likely direction a currency’s value is likely to take. In many ways this is similar to any speculative investment; all investors must have a good, broad knowledge of the market they are dealing in, which will help them to understand and predict market movements.

There are many financial news websites available today, all competing to be the first to cover important and relevant events in the financial and trading worlds. Naturally, these websites are the first port of call for experienced forex futures speculators, along with many other people in the world of investment and speculation. As a result, many websites offer paid services, which give access to more in depth articles and sources. However, a forex futures investor should not rely entirely on one website; free news media has a strong influence on currency confidence, so it is worth paying close attention to general world events reported on popular and local news sites.

Forex futures speculators usually use trusted brokers to obtain their contracts. There are a number of reliable firms that offer broker service, such as Berkeley Futures or AMP Futures, many of which trade online. Other companies compile data on money markets that shows historical trends – the website premiumdata.net is one such provider. For novice speculators there are many free guides available that provide advice during the early stages of the learning process; a simple web search is sufficient to find these. However, it is up to traders both veteran and inexperienced to use these services to their own advantage.