Best Online Futures Trading Platform in Hong Kong - Start Trading: Sign Up, Sign In

Choosing an online trading platform is a responsible task for a trader, because the result of trading will largely depend on the practicality, convenience and functionality of the trading software.

The modern market of brokerage services offers a good choice of platforms, so sometimes it is difficult to decide on the trading software choice.

In this brief overview, we will look at how to choose an online platform for trading futures in Hong Kong.

Futures contracts

A futures contract is a standard document that certifies an obligation to acquire an underlying asset at a certain time and under certain conditions in the future, with prices fixed at the time the parties to the contract fulfil their obligations. 

The underlying asset may be, inter alia, securities, commodities or funds. Futures are approved on the basis of standard terms, which are shaped by the exchange where they are traded.

The first futures contracts were mostly opened on the agricultural market. Investment in this sector was rather risky because even if there were relatively reliable forecasts the slightest force majeure would change the situation and lead to poor crops and jump jump jump in prices for certain products. By making a deal at the beginning of the next season, consumers received the contract price, irrespective of natural conditions or other factors.

Later, futures contracts began to be opened for other underlying assets. Today, not only commodities are traded on the futures market, but also currencies, shares and indices.

Each separate contract has its own specification, the main conditions of the contract. Such a document is fixed by the exchange. It reflects the name, ticker, type of contract, volume of the underlying asset, circulation time, delivery terms, minimum price change, and the value of the minimum price change.

A distinction is made between deliverable futures and settlement futures. A deliverable futures involves the mandatory delivery of goods at a predetermined price. Penalties are stipulated for late delivery or other failure to execute the contract. In the case of cash futures, the contract usually deals only with the price of the goods. The amounts and dates of the payments are agreed upon.

So, the settlement futures are futures, which don't have delivery.

In online trading we will consider only the trading with settlement futures.

A futures is essentially a contract concluded by two parties to the transaction: the buyer and the seller. After a certain period of time, the first party undertakes to buy from the second a certain amount of the underlying product, be it stocks or raw materials.

Thus, the traders themselves are the issuers of the futures, it is just that the exchange standardized the contract they conclude and strictly enforces the obligations.

When the futures contract expires there can be several options. The parties remain with their money or one of the parties makes a profit. If at the time of execution the price of the commodity rises, the profit is made by the buyer since he purchased the contract at a lower price.

Correspondingly, if at the time of exercise the value of the commodity decreases, the seller makes a profit since he sold the contract for a higher price, and the owner suffers some loss since the exchange pays him the lower price for which he bought the futures contract.

Open futures contracts online
Open futures contracts online

How do I choose a futures trading platform?

Online futures trading takes place on a trading platform that a brokerage company provides you with access to.

Choose a licensed broker with good references and acceptable service fees. Examine the trading platform. A good online futures trading platform is essential for quality trading. Pay attention to the following things:

  • Easy and convenient registration. On most platforms the registration procedure is greatly simplified and the process will not be difficult or inconvenient for you;
  • Intuitive interface. Trading programs are designed with traders' needs in mind and for their convenience. Therefore, most of the trading platforms are very user-friendly. You will find the options panel easy to understand, find all the information you need and open a trade with ease. When choosing a platform, make sure the interface is not complicated for your perception;
  • Simplicity of settlement operations. You probably use certain payment systems. Each trading platform offers different deposit methods and options. Activate the "deposit" option and the system will redirect you to the deposit and withdrawal section. Review the list of available deposit and withdrawal options. It is important to choose a platform that you can easily transfer money to and conveniently withdraw it from;
  • You will need to be familiar with the trading features you will need to trade. Apart from the price of the underlying asset, the futures price is also affected by different forecasts and risks of changes in the subject of the contract. That is why experienced traders use different statistics and technical indicators to analyse the market and predict possible changes. Modern trading platforms are equipped with a set of tools for analysis, which help you to correctly calculate possible profits or, conversely, losses;
  • Flexibility of settings. It is also important that you can adjust the operation of the platform to your own needs. These include different system alerts, choosing the colour resolution of the work screen, the type and look of the charts displayed, setting up keyboard shortcuts, and so on. You can assess the capabilities of the program settings by visiting the appropriate section on the platform;
  • The availability of 24x7 technical support. Of course, this point is important, because various technical problems can arise, and it is very important that you are able to solve them quickly and efficiently.

Good trading platforms also offer the possibility to open a demo account, through which we can try out the platform and also practice trading using fictitious test funds.

Online futures trading platform in Hong Kong
Online futures trading platform in Hong Kong

How do I start futures trading online in Hong Kong?

Once you have chosen a trading platform, there is a simple registration process, you need to fund your account and start trading. If you have little or no experience in trading, we strongly recommend you to choose trading platforms with demo accounts and start with practice trading on a demo account. This will give you good practice in trading and will help avoid possible mistakes in the future. How to register on the platform, how to open an account and how to deposit and withdraw money - read more in our review.

Registration on the trading platform

Once you have chosen a broker, register on an online investment platform. Registering on such a platform is usually not much more complicated than registering on any social network you use to communicate with your friends.

The registration process starts with entering your personal email address and password. After reading the terms and conditions and privacy policy you will also need to tick the relevant boxes.

Next you may need to enter your email address in order to respond to the notification confirming your account registration. You will then need to proceed to fill in the personal information requested by the site.

Registration on the trading platform
Registration on the trading platform

Deposits and withdrawals

A real account designed for real trading is very easy to fund. There is no need to search for external payment resources and check whether they can be used to fund the account in question. All available funding methods are listed in the "Deposit Funding" section. Here you can find such methods as depositing via bank payment card, as well as using popular online payment systems, such as WebMoney, AdvCash, Skrill, Perfect money, Neteller and others.  The minimum deposit amount is a few dollars. This makes trading on the platform available to almost everyone who wants to try their hand in the investment arena.

Withdrawals can be made using the same method you used to fund your account.

Convenient settlement transactions
Convenient settlement transactions

Using a demo account

A demo account is probably the first and foremost feature of a quality online platform. 

With a demo account you can try your hand at trading by carrying out test operations. You will immediately see a certain amount of fictitious money in your account. It is test money and you will not be able to withdraw it. But you can use the money for training operations. Try to trade on the platform, by choosing a demo account. All the functions of this account are exactly the same as the real one. Try to open a trade, use a multiplier. See what your result is: is there a profit, or, conversely, a loss? Analyse why this is the case. If the operation is successful, try it again using the same logic. If, on the contrary, you see a minus on your practice account, think about why your calculations did not work. A demo account is a unique opportunity to practice on a trading platform, without the risk of losing real money. In addition, the account is completely free, and you can update the amount of fictitious funds on it, if you need to, as many times as you like. There is no time limit on using a demo account. Use it as long as you need.

Aside from the demo account, many trading platforms also feature a tutorial section. Here you will find clear and accessible video tutorials, ranging from basic trading fundamentals to lessons on how to use sophisticated tools to analyze the market. We highly recommend that you watch these videos. The information is laid out in a very simple and accessible language. Even people who have never invested before can easily understand how the stock market works. 

By using a demo account, you can quickly learn the ins and outs of the platform, which will undoubtedly bring you closer to success.

Be sure to start with a demo account
Be sure to start with a demo account

Successful online futures trading

A futures is a separate exchange-traded commodity. The value of a futures is not always equal to the price of its asset. In addition to the price of the underlying asset, the price of the futures is influenced by various forecasts and risks of changes in the subject of the contract.

To make your trades profitable it is important to be able to correctly analyse the current market trends and predict possible changes in the price of the asset. To do this, traders resort to methods of fundamental and technical analysis. As a rule fundamental analysis is used when investing for a long term. The influence of fundamental factors, especially on commodity futures, is always multifactorial, and the market needs some time for analysis for a proper, informed reaction. Technical analysis is a set of tools to predict likely price movements based on patterns of past price movements in similar circumstances. Technical analysis uses many complex indicators that help determine the market trends and the direction of the trend.

A successful trader is, first of all, a good analyst. 

It is important to learn the methods of analysis and be able to apply them in practice to correctly forecast asset prices.

Take advantage of the video tutorials to familiarize yourself with the different types of indicators, and learn how to use them. Practice by using a demo account.

Learn online trading with video tutorials on the platform
Learn online trading with video tutorials on the platform

Study the market and economic news. Many platforms are equipped with a news section, which is very convenient.

By using a demo account, learn how to use leverage in your trades. This will allow you to significantly increase the amount you can invest, and therefore the profit that you can make.

Do not invest too much money if you have little trading experience, or if you are new to trading. Start with small amounts and gradually build up.

Caution, market research and free practice with a demo account will help you achieve good results.

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